Startups welcome extension of tax incentives in Nirmala Sithraman's Union Budget 2022

By: WE Staff | Thursday, 3 February 2022

Finance Minister Nirmala Sitharaman announced the extension of tax incentives for startups by one more year and the next phase of Ease of Doing Buisness in her budget speech.

“Startups have emerged as a growth driver for the economy. Tax incentives for startups increased from three years to four years of incorporation, in view of the pandemic,” said FM while announcing the Budget.

Porus Doctor, partner and consumer industry leader, Deloitte India said, “Ease of Doing Business (EoDB) 2.0 is a step in the right direction and single window clearance mechanism will go on a long way in improving EoDB in India and making India a more investment-friendly destination.”

Amarjeet Singh, Partner and National Lead, Emerging Giants and Startups, KPMG in India said, Ease of Doing Buisness 2.0 is recognition by the government that a lot more hoops need to be crossed for making India a favourable destination for FDI.

Sahil Dharia, founder and CEO, Soothe Healthcare said, “In addition to Ease of Doing Buisness EoDB 2.0, the Governmnet-backed funds via SIDBI will help scale buisnesses faster and attract more investments.”

Sameer Chopra, chief financial officer of Lenskart said, “To give a boost to the Startup community, it is proposed to limit the surcharge rate on transfer of any long term capital asset to 15 per cent with effect for 1^st April 22. This is really a welcome step by the Government and it will really help boost the investor sentiment and will promote more investment into start-ups.