Budget 2023-Startups in India

Budget 2023-Startups in India.

Govt extends tax holidays for national Budget 2023-Startups in India till Mar 2024, earlier this benefit was until 31st March 2023 startups incorporated up

“We propose to extend the date of incorporation for income tax benefits startups from 31.3.2023 to 31.3.2024. I further propose to provide the benefit of carrying forward losses on change of shareholding of startups from seven years of incorporation to 10 years,” said Finance Minister Nirmala Seetharaman.

On Wednesday, the Centre announced an extension to the tax holiday scheme for startups, meaning that startups incorporated up until next year can avail of tax benefits.

This is fantastic news for young entrepreneurs as it gives them more time to get their businesses up and running without worrying about being slapped with a hefty tax bill. This scheme is just one of many that the government has put in place in recent years to support and encourage entrepreneurship in India.

Who can Benefit from this Tax Holiday?

Tax Holiday Schemes in India
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If your startup was incorporated between April 1st, 2016, and March 31st, 2024, you may be eligible for a 3-year tax holiday. This means that you could receive a 100% tax rebate on profits made during those three years, as long as your annual turnover does not exceed ₹25 crores. This budget extension will make it easier for startups to meet their working capital requirements and ensure fluid cash flows.

Entrepreneurship is critical for a nation’s economic prosperity and the government is taking numerous steps to support startups. This resulted in making  India the third-largest ecosystem for startups worldwide and ranks second in innovation quality among middle-income countries.

Registration with DPIIT

Startup Registration With DPIIT
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The benefits available to startups are provided only to DPIIT-recognized startups. If you’re a startup, you may be wondering what benefits are available to you and how you can go about registering your company with the DPIIT (Department for Promotion of Industry and Internal Trade). Here’s a brief overview.

Your startup must be an incorporated entity in order to apply for recognition from DPIIT. You can do this by filing an online application on the website https://www.startupindia.gov.in/ or through the mobile app. When you apply, you’ll need to include:

  • A self-certified copy of the certificate of incorporation/registration granted by the Registrar of Companies OR
  • A certificate of business registration issued by any other statutory body
  • Additional documents providing website links, pitch deck, details of patents, etc., shall also be attached to support the application.
  • In the case of a Limited Liability Partnership (LLP), a partnership deed 
  • A self-declaration providing details of the Promoters, Directors, and Shareholders having stakes of more than 20% in the incorporated entity with their name, PAN, email ID, date of birth, and highest qualification

If you’ve been thinking about starting your own business, there’s no time like the present! With all of the benefits and support available from the government, now is the perfect time to get your business off the ground.