Union Budget: What’s In It For Startups

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

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

  • 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.

  • 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.

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

Author

Team Inc42

Inc42 Staff
Inc42 Magazine is an online startup magazine that covers some of the best startups and entrepreneurs in the India ecosystem. We also feature numerous guest posts and resources by leading experts from across the industry, including many from the Silicon Valley and Bay Area.
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