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Tax holiday for start-ups should be raised to 7 years, says Commerce Minister
To boost start-ups and create a favourable ecosystem for their stability in the country, the Ministry of Commerce and Industry has approached the Ministry of Finance with an industry proposal to increase the income tax exemption period for the start-ups from the current three years to seven years.
New Delhi: To boost start-ups and create a favourable ecosystem for their stability in the country, the Ministry of Commerce and Industry has approached the Ministry of Finance with an industry proposal to increase the income tax exemption period for the start-ups from the current three years to seven years.
We have recommended to Finance Ministry to raise tax holiday for start-ups to 7 yrs from 3 yrs told reporters on Monday.
Startups are keen on getting seven-year tax holiday as it takes longer than three years for a company to break-even.
The government's Startup Action Plan of January 2016 had spoken of cash constraints and limited access to finance as one of the tough challenges faced by start-ups in India.