SME Times News Bureau | 01 Feb, 2021
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 five-year tax holiday on employee stock ownership plan (ESOPs) for start-ups.