Extend tax holiday for startups to 7 yrs: Nirmala to FinMin

The Finance Ministry should consider raising tax holiday for startups to 7 years from the current 3 years to encourage budding entrepreneurs, Commerce and Industry Minister Nirmala Sitharaman said.

Nirmala said lots of inputs from startups have been received and “recommendations have gone to the Finance Ministry for extending the 3-year tax holiday to 7 years”.

“We shall pursue it and there shall now be lots more interactions with them,” she told reporters while briefing them on the initiatives taken by her ministry during the last two years. The minister said she would visit different co-work spaces of these new age companies to see the ground picture and infuse fresh energy.

Several startups have pitched for increasing the tax holiday period from the current three years as it would provide certainty on taxation matter.

(Agency)