Raise tax holiday for startups to seven years from three: Commerce minister
The Finance Ministry should consider raising tax holiday for startups to seven years said Commerce and Industry Minister Nirmala Sitharaman.
New Delhi : The Finance Ministry should consider raising tax holiday for startups to seven years from the current three years to encourage budding entrepreneurs, Commerce and Industry Minister Nirmala Sitharaman said on Monday.
Sitharaman said lots of inputs from startups have been received and "recommendations have gone to the Finance Ministry for extending the three-year tax holiday to seven years".
"We shall pursue it and there shall now be lots more interactions with them," she told reporters while briefing them on the initiatives taken by her ministry during the last two years.
The minister said she would visit different co-work spaces of these new age companies to see the ground picture and infuse fresh energy.
Several startups have pitched for increasing the tax holiday period from the current three years as it would provide certainty on taxation matter.
She said the government has announced the action plan for startups and is continuously interacting with them.
For 2016-17, the allocation of Rs 1,100 crore has already been made and 35 new incubators have been established, she said.
On foreign direct investment, she said between June 2014 and January 2016, FDI equity flow has recorded a growth of 53 percent to USD 60.04 billion, from USD 39.19 billion during the preceding 20 months.
FDI inflows in the country increased to the highest ever of USD 51 billion in 2015-16, she added.
Further, talking about the 'twitter sewa' launched by the ministry, she said stakeholders are using this facility and their queries have been resolved on time.
Within one month, 98 percent cases have been responded to, the minister said, adding that out of 750 queries raised, 735 have been cleared.
The issue was raised during the recent visit of Commerce and Industry Minister Suresh Prabhu to Canberra and Sydney.
There would be a lot of trolling and misuse just like it happens with online platforms and the government should learn to curb the negative factors and focus on nurturing the group of people who are really interested and who need help.