Union Budget 2021: Tax holiday for startups to be extended by one more year
Union Finance Minister Nirmala Sitharaman on Monday proposed the extension of tax holiday for startups by one more year. The move announced during the Budget presentation comes as India focuses on Aatmanirbhar Bharat mission aimed at making India a self-reliant nation.
In another boost for startups, Sitharaman said that one-person companies will be allowed to grow without any restriction on paid-up capital or turnover and to convert into any other type of company at any time.
The Union government announced tax relief for startups in the previous budget also as part of its efforts to boost the ecosystem in the country.
The Finance Minister last year also announced a five-year tax holiday on employee stock ownership plan (ESOPs) for start-ups.
"The extention of tax sops by another year and the allowance of single member firm registration is a definite boost to the start up industry. Hoping that the procedures to avail these are advertised more and made more accessible," Teja Gudluru, founder of UDo-now, said.
ALSO READ | ITR filing exempted for people above 75 years with only pension income
