'Reducing GST will incentivise investment in startups'

Budget 2020: 'Reducing GST will incentivise foreign investors to put money into startups'

By Ashish Bhatia,

Founder & MD, India Accelerator

"The startups are hoping that the budget will announce initiatives that could pull more foreign capital and boost growth. The reduction in GST charges will encourage more foreign investors to invest in Indian start-ups. Currently, the tax rate of long-term capital gains is 28.5% as compared to the same for listed equities to be 10%. This creates a significant tax burden on founders and employees of startups, as well as domestic angel and institutional investors. Further, the relaxation of personal income tax rates will act as a booster shot. It will certainly help the startup companies and the Millenials to improve further and ease doing business."