Budget 2017:startups in India look for 5 year holiday from tax!

PM Narendra Modi announced a break from tax for startups in India when he launched Start up India programme. This year the Indian startups look forward to him announcing other incentives along with 5-year tax-free operations.

In addition, the founders will find it easy to exit their companies since many faced issues on difficulties in shutting down businesses.

Commerce Minister Nirmala Sitharaman had recently said that her ministry had submitted start-ups suggestions about an extended tax holiday to Finance Minister ArunJaitley.

According to Money Control, 55% of the people working in start-ups said the ease of doing business in India has improved. But many remain worried about the sluggish investment environment in India. Recently, the US-based Fidelity Investments had marked down the value of Flipkart to USD 5.58 billion.

Effect of Demonetization on Start-ups

Mobile wallet based startups such asFreecharge, PayTM and Mobikwik are some of the startups in India which enjoyed the benefits of demonetization. Besides them, some other start-ups also came forward to ease the cash dependencies on logistics and packaged goods sector.

As per YourStory, many start-ups from different sectors remain undisturbed with the demonetization. Many medium-sized firms remain unaffected by the ban, the small sized firms were the ones that felt the pinch. Many have taken advantage of the online banking services like NEFT, RTGS and net banking.

Start-ups in India come together

Since the entry of Amazon and Uber which are rich in cash reserves have entered India, Ola and Flipkart have joined hands to fight against FDIs. Surprisingly, 79% startups in India believe that advantage should be given to home companies over international ones.

Finally, the question that comes in the minds of everyone in the start-up foray is if Modi’s Start-up Programme a failure? 65% of the Indian startups feel that Modi’s government has failed to help them and 23% of the start-ups feel that the programme has aided them.

Interesting figures have come into the picture that nearly 200 start-ups have shut down in 2016. Meanwhile, the big players like Makemytrip have chosen to list on the US bourses and not against Indian exchanges.

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