NEW DELHI: The budget has extended the period for setting up of new manufacturing units for availing the concessional tax rate of 17% (15% plus surcharge) by a year from 31 March 2023 to 31 March 2024.
This says experts will give enough time for companies setting up such units to avail of the benefits of a lower corporate tax rate. Similarly, the date of incorporating a startups entity eligible for tax incentives (in 3 out of 10 years) has been extended from 31 March 2022 to 31 March, 2023.
“In view of the Covid pandemic, I propose to extend the period of incorporation of the eligible start-up by one more year,” said the FM in her speech. In another announcement that could help the start-up community, the FM restricted the surcharge on capital gains arising out of transfer of any assets like unlisted securities and real estate at 15%.
This, experts believe, would partially offsetting the enhanced surcharge of up to 37% applicable to high income earners.The FM also clarified that businesses cannot be allowed to show health and education cess as business expenditure.