Union Budget: What’s In It For Startups

Welcome to Inc 42’s live and extensive coverage of the Union Budget 2016 with a special focus on startups and entrepreneurship.

Finance Minister Arun Jaitley presented his third Union Budget. The budget has been marked as #VikasKaBudget

Here is a look at the major announcements from the budget speech related to the startup ecosystem:

• Tax holiday for startups for three of five years of setting up the company

Startups making a profit in 3yrs, you're in luck.No tax on profits in 3/5yrs. Aligns w/ what VCs are now looking for ? #Budget2016

— Pankaj Jain (@pjain) February 29, 2016

• Lowering of Corporate IT rate for companies, not exceeding INR 5 Cr. turnover, to 25% plus surcharge.

#Startups #Budget2016 below. Company registration in 1 day! I'd love to see this one come true https://t.co/iYC0fdxHz1

— ashwini asokan (@LadyAshBorg) February 29, 2016

• Amendment to the Companies Act to ensure speedy registration and boost startups.
• 100% deduction on profits for startups for 3 out of first 5 years; MAT to apply.

Tax holiday for #startups should be provided in first few profitable yrs instead of first 3 yrs via @sachingupta006: https://t.co/bz0sDCvMKL

— iSPIRT/ProductNation (@Product_Nation) February 29, 2016

• Capital gains not to be taxed on investments in regulated fund of funds for startups.
• Long-term capital gains for unlisted firms lowered from three years to two years.
• Hub to support SC/ST entrepreneurs.
• INR 500 Cr. earmarked for SC/ST and women entrepreneurs under the Startup India scheme.
• Entrepreneurship to be taught through MOOCS. This will open up access to educational resources across the country.

Tax exemption for MSME with turnover below Rs 2 Cr will is a welcome step #Budget2016

— कलराज मिश्र (Kalraj Mishra) (@KalrajMishra) February 29, 2016

Other Developments For Digital India

• A bill on targeted delivery of financial services, using Aadhar, to be introduced.
• Motor Vehicles Act to be amended to enable entrepreneurship in the road transport sector.
• INR 1,700 Cr. for 1500 multi-skill development centres.
• 10 public and 10 private educational institutions to be made world-class.
• Digital repository for all school leaving certificates and diplomas. INR 1,000 Cr. for higher education financing.
• Unified e-platform for farmers to be inaugurated on Ambedkar’s birthday