Budget 2022: Tax incentives for startups incorporation period extended by 1 year: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday has given a big relief to startups in the budget 2022. In her fourth Budget presentation, the finance minister has announced an extension of one year for the incentives provided to them.

'To extend the period of incorporation by 1 year up to March 31, 2023, for startups to avail tax incentives,' says FM.

Incentives for Startups-

It has been announced to extend the incorporation period for 1 year in which tax incentives will be available. The Finance Minister said that the role of startups in the country's economy is very important today. The government has taken this decision in view of the Corona pandemic.

"With announcement of Union Budget 2022 by the Finance Minister, the budget has focused more on the Made in India initiative to minimize the dependency. To encourage the start-up ecosystem government has relaxed the tax and introduced flexible policies to help start-ups in the country," Priyadarshi Mishra, CEO/Founder, Design & Construct.

"With an expected growth of 9.27% the budget has given enough flexibility for startups which will help to create new job prospects. The use of drones for startups will push the startups for excellence. The promotion of fintech and technology-based development will help the economy gain a pace as well as create a better job prospect for individuals," she added.