Budget 2023 | Government extends tax rebate for start-ups by a year

The Finance Minister has proposed extending tax benefits to start-ups incorporated till March 31, 2024.

Asserting the importance of entrepreneurship for the economic development of the country, Finance Minister Nirmala Sitharaman on Wednesday proposed to extend the period of incorporation of eligible start-ups by one more year till March 31, 2024. Tax benefits were available for start-ups incorporated till March 2023 till now.

“The government has taken a number of measures for start-ups and they have borne results. India is now the third-largest ecosystem for start-ups globally and ranks second in innovation and quality among middle-income countries,” Ms. Sitharaman said as she presented the Union Budget 2023-24 in the Lok Sabha.

The carry forward of losses to set off against future profits will now be allowed for 10 years instead of seven years, the Finance Minister added.

In January 2016, the government launched Startup India initiative to build a strong ecosystem for nurturing innovation and encouraging private investments in the startup ecosystem. Since then, a series of steps have been taken to promote startups in the country.