Follow us on   Twitter   Facebook   Explore Trade Now Feedback
Budget 2016 »Budget Expectations»Budget Expectations Details
Budget Expectations Details

Budget 2016: Start-ups bat for tax sops, investment incentives

Press Trust of India / Mumbai 28 Feb 16 | 12:22 PM
163 Replies

The start-up community, which has started facing funds crunch of late, is looking to the Budget for an easy tax regime, relaxation in investment norms and further incentives for innovation.

The country is home to over 18,000 start-ups, making it the third largest in the world after the US and England.
Read our full coverage on Union Budget 2016

"iSpirt has represented to the finance ministry that a small basket of tax sops merely will not be effective for the existing system which is riddled with several bottlenecks," co-founder of iSpirt Foundation Sharad Sharma told PTI.

It has submitted a 36-agenda point to the finance ministry representing various hurdles that start-up face today.

Investors in start-ups are also expecting rationalisation in capital gains tax and want this should be aligned with the current tax regime for investments in listed companies, he said.

"Currently, start-up investors pay a much higher tax on capital gains while taking a higher risk compared to publicly traded firms. We expect that capital gains tax for alternative investment funds and angel investors will be aligned to the current tax regime for investments made in listed shares," Indian Angel Network President Padmaja Ruparel said.

The apex body for the IT industry Nasscom has also voiced similar concerns.

"Investments in early stage start-ups are high risks and there is a need to rationalise tax rates for investors," Nasscom 10,000 start-ups Vice-President Rajat Tandon said.

"start-ups should be exempted from direct (announced in start-up Action plan, but has limited impact) and indirect taxes including MAT, which would reduce compliance burden and reduce cash outflows," he added.

While the start-up India Action Plan announced several favourable measures, Indian Angel Network co-founder Saurabh Srivastava said the investors are hoping that the Budget would introduce the necessary measures to take it forward.

These include more clarity on the income tax exemption for start-ups, defining and identifying start-ups, setting up a credit guarantee fund, compliance waivers, and creation of a Rs 10,000-crore fund for start-ups, he said.

To incentivise innovation, iSpirt has given two important recommendations. First, creating a favourable tax regime for IPR to enable start-ups to establish their base.

Second, it wants investments towards IPR creation to be treated at par with capex in manufacturing from a taxation perspective.

163 Replies


    17 Sep 20 at 04:27 AM
By: general

Investitions is something you should do a lot in your life. If you make investitions you can make money. If you don't make investitions then play this Harry Potter House Quiz and you will be very happy.

    12 Sep 20 at 04:37 PM
By: Gamer

It is amazingly decent to see the best subtle elements introduced in a simple and understanding way. Ressource

    12 Sep 20 at 04:23 PM
By: Gamer

It's really nice and meanful. it's really cool blog. Linking is very useful have really helped lots of people who visit blog and provide them usefull information where to buy dumps

    06 Sep 20 at 07:45 PM
By: bogdan

I find it very interesting, can you expand your opinion? does he like me quiz

    30 Aug 20 at 01:11 PM
By: Berkah365

Cara Daftar Judi Bola – Judi bola online adalah jenis taruhan yang sudah sangat berkembang dan populer sekali di Indonesia sekarang ini. Bermain taruhan judi bola online tentu cukup seru sekali, dimana semua pemain dapat menghilangkan kebosanannya hanya dengan melakukan taruhan judi bola online

    26 Aug 20 at 01:37 PM
By: jackharry

Cool you write, the information is very good and interesting, I'll give you a link to my site. Swamp Boys Seeds

    25 Aug 20 at 11:42 AM
By: John

This is a good post. This post gives truly quality information. I’m definitely going to look into it. Keep up the good work. torque sensor

    22 Aug 20 at 05:33 PM
By: boeesun

Excellent info! I’m also an expert in this topic so I can understand your effort very well bandarq online

    22 Aug 20 at 05:31 PM
By: gheslin

very interesting article, thank you for the information bandarq

    22 Aug 20 at 05:28 PM
By: garyblack

I have read all the comments and suggestions posted by the visitors for this article are very fine,We will wait for your next article bandarq.Thanks

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | | Next

Leave a reply

Email: * 
Comment: *
(Max. 1000 characters)
Word Verification: * 

Related Stories

    Quick Jump

    Budget Glossary

    • Appropriation Bill: It is presented to Parliament for its approval, so that the government can withdraw from the Consolidated Fund the amounts required for meeting the expenditure charged on the Consolidated Fund. No amount can be withdrawn from the Consolidated Fund till the Appropriation Bill is voted is enacted.

    Budget Trivia

    • Pranab Mukherjee's first Budget in 1982 included one provision that set the stage for India Inc's most celebrated takeover battle.
    Widgets Magazine