Startup India is an Ambitious project launched by the Government of India to boost employment in the country. The campaign was Launched by Indian Prime Minister, Mr. Narendra Modi on Independence Day of India, 15 August 2015.
A startup is a budding company that is just at the starting point of development. Startups are small and initially financed and operated by a handful of founders or one individual.
The motive of a startup is to meet a marketplace need by developing a viable business model around an innovative product, service, process or a platform.
On 1 st February The finance minister of India Mr. Arun Jaitley announced the budget in Indian Parliament.
The Key Points Of Budget 2018 are as follows :
- Govt has made no changes in the personal income tax rates applicable to individuals.
- For senior citizens, privileges of interest income on bank deposits raised to Rs 50,000.
- Govt to cut down on hardships faced in realty deals; no adjustment to be made in case circle rate does not exceed 5 pc of sale consideration.
- A standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried taxpayers. Rs 8,000 crore revenue lost due to the standard deduction allowed to salaried employees.
- Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs 15 lakh.
- Cash payments exceeding Rs 10,000 by trusts and institutions will be disallowed in a bid to curb cash economy.
- A strong case for long-term capital gains from equities; 10 pc tax on long-term capital gains in excess of Rs 1 lakh.
- Education cess increased to 4 pc from 3 pc to collect additional Rs 11,000 Cr.
- Customs duty on perfumes, dental hygiene, after-shave, deodorants, room deodorizers, preparations for use on hair doubled to 20 pc.
- Import duty on fruit juice raised from 30 pc to 50 pc.
- Duties on petrol, diesel rejigged; basic excise duty lowered by Rs 2 per liter, Rs 6 additional excise duty abolished, but Rs 8 a liter road cess introduced. ”2 Rs excise on petrol and diesel is being reduced.
- Import duty on LCD/LED/OLED panels, parts of TVs hiked to 15 pc; duty on smartwatches, wearable devices, footwear doubled to 20 pc.
- Customs duty on imitation jewelry hiked from 15 pc to 20 pc; doubled on all watches to 20 pc.
- Customs duty on sunglasses, cigarette lighter, toys, bus and truck tires, select furniture hiked.
- Import of solar tempered glass for the manufacture of solar cells exempted from customs duty.
- Customs duty on crude edible vegetable oils like groundnut oil, safflower seed oil hiked from 12.5 pc to 30 pc; on refined edible vegetable oil from 20 pc to 35 pc.
- Tax on distributed income of equity oriented mutual funds at the rate of 10 percent announced.
- New scheme for providing electronic assessment to eliminate person-to-person contact
- Customs duty on mobile phones to be hiked to 20 percent from 15 percent
- Modi government had guaranteed to reduce poverty; we have taken decisive action. From the ease of doing business, our government has moved to ease of living for the poor and middle class.
What the budget Has to offer to the startups in India?
Let’s take a look at the major announcements from the Finance minister of India in the Union Budget 2018 in promoting growth and prosperity of Startup Businesses in India
- INR 281 Cr has been Designated for the scheme of Investment Promotion in Startup in
- INR 200 Cr will be invested for Atal Innovation Mission
- INR 720 Cr has been allocated for innovation, technology development, and deployment.
- INR 87.86 Cr will be invested for the development of an entrepreneurship scheme in India.
- INR 3,073 Cr has been allotted solely for Digital India programmes
- INR 300 Cr will be spent on manpower development in Digital India.
- INR 250 Cr has been allocated for setting up of Integrated Land Information Management Systems in 100 districts.
- An amount of over INR 2,500 Cr has been allotted for Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit.
- Over INR10,000 Cr has been provided in Budget 2018-19 for the creation and augmentation of the country’s telecom infrastructure.
- A sum of INR 450 Cr has been kept for the installation of 25,000 WiFi hotspots.
Apart from above budgets govt also changes the definition of startup under section 80 IAC of the act to promote the startups which are following
- Tax benefits also available to those startups which are done Private Limited Company Registration on or before 1st april 2019 but before 1st April 2021.
- Total turnover of its business does not exceed 250 Million INR would apply to 7 previous year commencing from date of registration.
- The definition of eligible business has been enlarged to provide that the benefit would be available if it is engaged in innovation, development or improvement of products or process or service or a scalable business model with a high potential of employment generation or wealth creation.
Above amendment will take effect from 1st April 2018 and apply in assessment year 2018-19.
Startup requires less capital or sometimes no capital to start, a startup can be run with no or less infrastructure and facilities and you can work online and from home also in startup companies.
With such features startup have huge potential in the Indian economy and the startup can play a major role in the development of the economy and finance. With development listed above, we are sure that it will give a major boost in growth of development and will create jobs for more people in the country.
(Disclaimer: This is a guest post submitted on Techstory by the mentioned authors. All the contents and images in the article have been provided to Techstory by the authors of the article. Techstory is not responsible or liable for any content in this article.)
Image Source: barrons.com
About the Author:
Ankush Sachdeva is COO & Co Founder at MyOnlineCA which deals in Online Business and Tax Registrations across India.