In a move to encourage Indian startups, Finance Miniter Arun Jaitley is thinking to give a 5 year tax exempt. This is first reported by Financial Express quoting a source. Presently Startups can get a tax free business year for upto 3 years.
To avail this benefit, startups have to apply to this scheme to get an eligibility certificate. Earlier The Department of Industrial Policy and Promotion (DIPP) suggested giving a 7 year tax free eligibility, since startup take time to break even. Not sure how far this move will successful be executed. Government of India is announcing many schemes for startups, but not all are being implemented. Best example is when Government of India approved only 1 startup for Startup India initiative. Among 728 applied only 1 approved. Well the reason given was that startups need to comply with the set government standards.
Let see how many startups will qualify for this 5 year tax free scheme. Read more Indian Startup News.