The Indian Finance Minister, Mr. Jaitley, has presented the Union Budget 2016-17. According to the budget, the investor community was confident to receive the exemptions in taxation especially on angel investing. Also, the start-up companies were also hoping to get tax rebates which will give them an easy assessment to do business.
Finance Minister said, “In the Union Budget-2016, there is something for everyone.” If you bring your eyeballs on this year’s Union Budget, then you’ll have a clear idea about Modi Government which loves the start-ups, but the govt. Is watchful regarding showcasing its affection? The “Start-up India initiative” call from this govt. got our hopes up on anticipating more key announcements for the varied sectors, but in reality, that didn’t occur- said Mr. Jaitley.
Announcement Made By Modi In Addressing Startup India:
- The Indian PM, Narendra Modi, addressing to Start-up India initiative, earlier announced that his organized govt. is focused on investing Rs. 10,000cr in Start-up businesses.
- But in Union Budget, nothing clearly mentioned about accessing this fund. However, the Start-up India initiative has a reason to cheer up as in Union Budget some of the taken initial steps have been clearly mentioned.
- This is regarding the simplification of taxes for businesses whose annual turnover is below Rs. 2cr.
- According to Union Budget-2016, those businesses are having an annual turnover less than Rs. 2cr will have to pay 8% of tax to the government.
- This initial step for the start-ups will help to increase the level of micro and small business throughout the countryside.
- Another good step that this govt. has taken for start-ups is the reduction of corporate tax percentage for the businesses whose annual turnover is around Rs. 5cr.
These innovative steps of Modi government ensure that start-up businesses should not lose hope from the government as sooner or later, other initiatives will be implemented for sure. Jaitley said- these are the signals for every Indian entrepreneurs and investor to wait for the upcoming initiatives from the Modi-led govt.
There were two key announcements also listed in the Union Budget-2016 and those are:
- Set up of a Rs.500cr fund especially for Dalit entrepreneurs
- Taxation clarity for e-commerce businesses
The Finance Minister said that “these are the signs that Modi-led govt. doesn’t want start-up businesses to set up their base in any foreign country for easy procedural purposes”. The government also wants Indian entrepreneurs to come out from every social stratum and be a part of Start-up India- he added.
This government has also planned to include unemployed youths to help entrepreneurs in successfully establishing their business; therefore, govt. is focused on educating them through offering massive online open courses. It can benefit both youth and aspiring entrepreneurs- he said. Once it goes live, nothing can stop to establish an emerging business sector in India, which is a good step in the ease of doing business- he added. 25% relaxation in corporation tax is a new innovative step made by Modi govt. to motivate more business entrepreneurs to invest in manufacturing-led businesses.
The Finance Minister said, “This was a smarter budget compared to earlier Union Budgets which is committed to kick-start the rural and agrarian sectors’ growth and nobody will have the power to stop the growth of India in coming years.”