Major tax breaks for India's start-ups in Budget 2022. Here's what it means for them
Start-ups looking for a leg-up in the Union Budget 2022 found some assistance in Finance Minister Nirmala Sitharaman's announcement of bolstering the tax incentives provided to start-up establishments. While the existing criteria for qualifying as eligible for these incentives mentioned the year of incorporation before March 31, 2022, the Finance Minister has increased the eligible year of incorporation by another year, which brings it up to March 3, 2023. These tax incentives will be provided for three consecutive years out of ten years from the year of incorporation.
The Finance Minister tabled the budget at 11 am on February 1. President Ram Nath Kovind kicked off the Budget Session of the Parliament on January 31, following which FM Sitharaman presented the Economic Survey. Additionally, the Budget has also capped the surcharge on the income of companies who are part of consortiums from 37% to 15%. Also, the graded surcharge on the long term capital gains, which stood at 37% has been reduced to 15%. This, the Finance Minister says, will boost the start-up community and be a shot in the arm for the government's Aatmanirbhar Bharat initiative.
Last year, the Union Budget allotted resources towards the Aatmanirbhar Bharat Abhiyan extensively, be it in the social sector, energy, government reforms, migrant workers or agriculture. While the National Education Policy was the focus, the education sector saw a budgetary slash of 6 per cent from Rs 99 crores to Rs 93.2 crores last year.
