The budget has proposed to extend tax holiday offered to startups under the Startup India scheme, but industry representatives said the measures will apply to less than 1% of 84,000 startups registered with the Department for Promotion of Industry and Internal Trade (DPIIT).
In the Union Budget for 2023-24, finance minister Nirmala Sitharaman said the date of incorporation for startups to avail tax benefits has been extended by a year to March 31, 2024, and that the tax incentives will be applicable on startups in the first 10 years of incorporation, up from seven years earlier.
However, for startups to be eligible for availing the tax incentives, their turnover should be less than Rs 100 crore in any of the previous financial years
