01 February 2017, India:
For all the aspiring startup founders, Finance Minister Arun Jaitley just made your day. Jaitley proposed extending the time period for availing tax benefit for three years in the first seven years of existence.
“The profit linked deduction available to the startups for three years out of five years is being changed to three years out of seven years,” Jaitley said in his Budget Speech.
On the issue of removal of Minimum Alternate Tax (MAT), the Finance Minister said “it is not practical to remove or reduce MAT at present. However, in order to allow companies to use MAT credit in future years, I propose to allow carry forward of MAT up to a period of 15 years instead of 10 years at present.”
To encourage micro, small and medium enterprises (MSMEs) the Finance minister also proposed to reduce the income tax for smaller companies with annual turnover up to Rs 50 crore to 25%.
The moves come in response to a series of presentations made by the Department of Industrial Policy and Promotion (DIPP), industry bodies like the National Association of Software and Services Companies, think tanks and start-ups to extend the tax concession period as per The Mint report. (Photo: Pradeep Gaur/Mint)