It's no more a surprise that Modi's much-hyped initiative Startup India isn't exactly getting the kind of feedback he had expected. With each passing day, the noise about the slow pace of approvals to startups for tax sops is getting louder and louder. In order to curtail the damage, the government is speeding up the process and has given as many as 55 startups a green signal in the on-going fiscal so far as compared to just 10 Startups in the last financial year.
To recall, in July we informed how till March 2017, only around 10 Indian startups were able to pass the eligibility for tax benefits. The 55 startups show the pace that the initiative has picked up.
According to a statement given by a government official to BusinessLine, “Approvals will be even faster in the coming months as now the inter-ministerial board (IMB) is giving reasons to applicants for non-approval and is allowing start-ups to apply again by making changes in their original proposals."
Launched in 2016, the StartUp India initiative by the government aims at celebrating the entrepreneurship spirit in the country, who are making use of technology for solving problems across various industries and sectors, right from education to environment, sports and medicine, to name a few. But, the initiative has been largely garnering bad press since then because of the low levels of tax incentives on offer and the handful of startups that qualified for it.
The Union Budget for 2017-18 saw taking care of the incentive package to some extent by allowing eligible startups to make use of their three-year tax holiday in a period of seven years instead of five years.
The Department of Industrial Policy & Promotion (DIPP), the one bestowed with the responsibility of running the startup programme, recently decided to increase the number of IMB meetings for scrutinising the startup applications and instead of simply rejecting their proposals, they decided to have a healthy communication with the applicants on why their projects did not pass the eligibility test.
Till date, the Centre has recognised over 2,000 applicants as startups of which only 65 have qualified for tax sops.
To recall, in July we informed how till March 2017, only around 10 Indian startups were able to pass the eligibility for tax benefits. The 55 startups show the pace that the initiative has picked up.
According to a statement given by a government official to BusinessLine, “Approvals will be even faster in the coming months as now the inter-ministerial board (IMB) is giving reasons to applicants for non-approval and is allowing start-ups to apply again by making changes in their original proposals."
Launched in 2016, the StartUp India initiative by the government aims at celebrating the entrepreneurship spirit in the country, who are making use of technology for solving problems across various industries and sectors, right from education to environment, sports and medicine, to name a few. But, the initiative has been largely garnering bad press since then because of the low levels of tax incentives on offer and the handful of startups that qualified for it.
The Union Budget for 2017-18 saw taking care of the incentive package to some extent by allowing eligible startups to make use of their three-year tax holiday in a period of seven years instead of five years.
The Department of Industrial Policy & Promotion (DIPP), the one bestowed with the responsibility of running the startup programme, recently decided to increase the number of IMB meetings for scrutinising the startup applications and instead of simply rejecting their proposals, they decided to have a healthy communication with the applicants on why their projects did not pass the eligibility test.
Till date, the Centre has recognised over 2,000 applicants as startups of which only 65 have qualified for tax sops.
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