New Delhi: Commerce and industry minister Nirmala Sitharaman on Monday indicated that start-ups may get additional tax benefits in the forthcoming budget, to be unveiled on 1 February.
The ministry has already suggested the finance ministry to consider raising tax holiday for start-ups to 7 years from the current 3 years to encourage budding entrepreneurs. Sitharaman said tax and tax-related matters always come from start-ups as “it makes tangible difference to a start-up, and in that some work has happened, more to be happening. Let’s see what this budget is going to offer”.
She said that all the suggestions of the entrepreneurs have been compiled by the ministry and given to the finance ministry. Asked about raising the tax holiday for 7 years, she said: “That suggestion also we have given to the finance ministry. We have to wait.” Tax related (benefits) will have to come only through the budget, she said, adding that suggestions with regard to exempting start-ups from MAT (minimum alternate tax) have also been forwarded.
Further she said the government is committed to removing legislative hurdles, if any, being faced by them. The Centre is also involving local authorities, including states, to help the budding entrepreneurs in terms of local taxes among others.
The minister also asked DIPP secretary Ramesh Abhishek to organise a meeting with RBI, SIDBI, banks and VCs to deliberate on funding related issues. Sitharaman was speaking at the first anniversary of Start Up India here. Speaking on the occasion, Abhishek said the start-ups need more support in terms of taxation and infrastructure. “We need to do more for them and we are working with the finance ministry (on tax related matters),” he said, adding that state governments too should extend full support to promote the units in the country.