Comments from: Ishendra Agarwal, Founder & CEO, GIVA on the Budget 2021 announced today
The much awaited union budget presented by our finance minister Nirmala Sitharaman is very promising and shows a positive path for the recovery of the Indian economy post pandemic. The government’s aim to focus on promoting small and medium business is quite evident. The proposal to modify the definition of small companies under the Companies Act 2013 by increasing their thresholds for Paid up capital from not exceeding Rs.50 Lakh to not exceeding R. 2 Crore and turnover from not exceeding Rs. 2 Crore to not exceeding Rs. 20 Crore is a welcome move by the government as this is likely to benefit more than two lakh companies in the country. The announcement of incentivizing the incorporation of One Person Companies (OPC’s) by allowing them to grow without any restrictions on paid up capital and turnover, allowing conversion into any other type of company at any time, reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days and also allowing Non Resident Indians (NRIs) to incorporate OPCs in India would provide tremendous boost for startups and would also encourage many young entrepreneurs and innovators.
The extension of capital gains exemption for investment in start-ups by one more year is likely to incentivize funding for the startup community. The government’s decision on extension for claiming tax holiday for start-ups by one more year is another welcome move and would ultimately benefit the startup ecosystem – Ishendra Agarwal, Founder & CEO, GIVA
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