New Delhi: Finance Minister Nirmala Sitharaman on Monday proposed an extension of the eligibility for claiming tax holiday and capital gains exemption for investment in startups till March 31, 2022. So start up are going to get tax breaks for another year.
Accoridng to a PTI report, "In order to incentivise startups in the country, I propose to extend the eligibility for claiming tax holiday for startups by one more year to March 31, 2022," Finance Minister Nirmala Sitharaman said. Presenting the first paperless Union Budget, she further said: In order to incentivise funding for the startups, I propose to extend the capital gains exemption for investment in startups by one more year to March 31, 2022".
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Sitharaman said the intention was to reduce the rate as much as to simplify the tax structure. Finance Minister, who delivered the longest ever Budget speech ever, also said the government intends to remove all income tax exemptions in the long run. "Income tax cuts follow reduction in corporate tax rates in September last year and in the same manner, with or without exemptions," she told reporters. As per the new tax regime announced by the FM Sitharaman in her budget speech, the tax rate on income in the range of Rs 5-7.5 lakh will be halved to 10 per cent. Likewise, income in the range of Rs 7.5-10 lakh will attract 15 per cent tax in the new regime, down from the existing 20 per cent.