BENGALURU: Finance Minister Nirmala Sitharaman has capped the surcharge on long-term capital gains (LTCG) at 15% irrespective of the amount. This move, according to experts, will pave the way for more direct investments in start-ups.
"The long-term capital gains on listed equity shares, units etc. are liable to a maximum surcharge of 15%, while the other long term capital gains are subjected to a graded surcharge which goes up to 37%. I propose to cap the surcharge on LTCG arising on transfer of any type of assets at 15%," she said.
FM also announced slew of measures to boost start-ups including an extension of one more year for the incentives provided to start-ups. Start-ups established before March 31, 2022, had been provided a tax incentive for three consecutive years out of 10 years from incorporation. Now, this will be extended by one more year- up to March 31, 2023.
She said that start-ups will be promoted to facilitate ‘Drone Shakti’ through varied applications and for Drone-As-A-Service (DrAAS). Also, to finance start-ups for agriculture and rural enterprise, a fund with blended capital, raised under the co-investment model, will be facilitated through NABARD.
Venture Capital and Private Equity have invested more than `5.5 lakh crore last year facilitating one of the largest start-up and growth ecosystems. FM also said that an expert committee will be set up to examine and suggest appropriate measures to scale up this investment.
“These steps are taken to help SMEs and start-ups will go a long way in strengthening the backbone of India’s economy,” said Nasscom. The budget also focused on emerging technologies like drones, deep tech, fintech, healthtech, edtech, etc. However, start-ups’ long-pending demand for clarity on foreign listings was not addressed.
To facilitate ‘Drone Shakti’
Start-ups will be promoted to facilitate ‘Drone Shakti’ through varied applications and for Drone-As-A-Service (DrAAS). Also, to finance start-ups for agriculture and rural enterprise, a fund with blended capital will be facilitated through NABARD.