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.
— 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.
— 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