NEW DELHI:
The year 2020 was more of a year of survival and challenges. So from Budget 2021, we expect some measures to renew the economy and aid the startup with rising financially. The major pointer to look forward to in the upcoming budget is the ease in taxes which can help lessen up the load from small and new businesses. In the midst of the COVID, startups have stepped their game and come to the rescue for daily essentials and setting the lane for the future of business. There are high expectations from the start-up network for the upcoming budget to provide the essential force to enable further expansion for both entrepreneurs and investors:
Angel tax’ on shares issued by startups has been a constant topic of discussion. While the government has relaxed the regulations and process for startups to claim exemption from angel tax, there still exists different issues relating to angel tax that require to be re-visited and appropriately addressed such as, accepting an ‘exception-based’ approach for applicability of angel tax, relaxation of the current regulations said, Chef Shruti Gupta, founder The Blush Bakery.
The startup sector will keep on looking for the government’s support in helping ease of access to capital, encouraging domestic investment atmosphere, scaling up the business, and reducing regulatory and observance burden on startups. India is the third-largest startup nation in the world, and the government should make sure that startups have sufficient care and backing to successfully get well and thrive, as the startup industry has vast amounts of untapped potential to make employment, stimulate spending among the public, and generate positive inflows in the form of FDI.
Encouraging Indian investors- Startups are still mostly reliant on overseas investments to help construct their footprint. The government should think of policies and incentives that give confidence to Indian investors to back home-grown startups such as a re-look at an improved surcharge on capital gains from unlisted shares appropriate for resident individuals.
