Budget 2018: Tax incentives, faster clearances needed for start-ups to grow

BUDGET 2018 - India’s start-up ecosystem has seen rapid growth over the past few years. At present it has reached a stage where it could be said have matured enough be called one of the very important cogs in the Indian economy’s wheel. According to industry players, the country’s start-ups need only a bit of a push in the form of certain incentives, particularly when Finance Minister Arun Jaitley present the Narendra Modi government’s final full Budget in this term on February 1.

Jaitley should consider in the upcoming Union Budget 2018-19 giving start-ups some impetus with tax incentives and faster procedure clearances, suggests Avinash Tiwari, co-founder & director of pCloudy, a software testing startup.

“We are expecting the tax holiday period would be increase from three to seven years. Considering the slump in valuations in subsequent rounds of funding by start-ups, we look forward to the government providing necessary clarity for invoking anti-abuse provisions on taxation of issue of shares at higher than FMV,” Tiwari says.