- Date : 02/02/2022
- Read: 3 mins
Here's a quick look at what Budget 2022 has in store for start-up owners and entrepreneurs.
If you, too, have been on the edge of your seat waiting for Finance Minister Nirmala Sitharaman to announce Budget 2022, you are not alone. The budget has provisioned many new schemes for different sectors and industries. Let's find out what Budget 2022 has to offer start-up companies and entrepreneurs.
1. Start-up tax holiday
The Start-up Tax Holiday scheme was initially announced in Budget 2017 by the then Finance Minister Arun Jaitley. This scheme allows start-ups that were incorporated after 31 March 2016 to opt for a break from tax for three out of seven years from the date of its establishment. Budget 2022 has proposed to extend the holiday scheme for start-ups till 31 March 2023 to incentivise funding for these businesses. This will enable start-ups to get a 100% tax rebate as long as their annual turnover is under Rs 25 crore in a financial year.
Also Read: Union Budget 2022: Key Highlights
2. NABARD to finance start-ups
The FM announced that NABARD (National Bank for Agriculture and Rural Development) will finance start-ups in the agriculture and farming sector. She also revealed that start-ups would support Farmer Producer Organisations (FPOs) and offer tech support to farmers.
3. Ease of Doing Business 2.0
The FM announced the next phase of ease of doing business with the government’s Ease of Doing Business 2.0 and ease of living. The aim is to digitise manual processes, remove overlapping compliances, and promote the integration of state and central level systems in the coming year.
Also Read: Highlights Of Union Budget 2021-22
4. Concessional corporate tax rate
The concessional corporate tax of 15% will be extended for another year until March 2024 for newly incorporated manufacturing enterprises.
5. Drone support to farmers via start-ups
The government aims to promote start-ups and extend drone support for farmers through Kisan Drones for crop assessment. The budget also highlighted the need for chemical-free and natural farming and public-private partnerships to offer high-tech support to the country’s farmers.
This is an excellent time for businesses, as can be seen from start-ups in India raising a record $24.1 billion in 2021. A whopping 11 start-up IPOs (Initial Public Offerings) were launched, which raised approximately $6 billion from the public. Start-ups and entrepreneurs are going to benefit from some significant announcements in this year's budget. However, only the coming year will be able to tell how things shape up.