BENGALURU: Commerce and Industry Minister Nirmala Sitharaman on Monday indicated that start-ups may get tax benefits in the upcoming Budget.
In its inputs for the upcoming Budget to the finance ministry, the commerce ministry has suggested raising the tax holiday for start-ups to seven years from three years at present, she said. The aim is to encourage budding entrepreneurs, she added.
Speaking on the occasion of the 1st anniversary of Start-Up India in New Delhi on Monday, she said that 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”. When asked about raising the tax holiday for seven years, she said, “That suggestion also we have given to the finance ministry. We have to wait.”
Sitharaman said suggestions to exempt start-ups from minimum alternate tax have also been forwarded. Also, legislative hurdles faced by start-ups will be removed as the Centre will be involving local authorities, including states to help out budding entrepreneurs, she added.