Tax concession for 'startup' companies extended for one more year

Union Finance Minister Nirmala Sitharaman announced in the Interim Budget that 'Income tax concessions for investments made in startup (innovation) companies and pension funds will continue in the coming financial year as well.

Nirmala Sitharaman budget 2024

Providing incentives to encourage the role of startups in the economy is necessary for the progress of the country.

Accordingly, under the 'Startup India' scheme, income tax relief is provided to new start-up companies launched in the country since 2016.

Companies registered with the Central Government can avail exemption from payment of income tax for any consecutive 3 years in their first 10 years.

According to the last year's budget, this tax deduction is applicable only to companies registered up to March 31.

In this case, in the interim budget presented on Thursday, Minister Nirmala Sitharaman announced that the tax concession will be applicable to companies registered in the coming financial year.

While various measures are being taken to promote the startup system in the country, it is noteworthy that 1.17 lakh companies have been registered with the central government so far.

Similarly, the tax exemption on certain incomes of certain IFSC units of the country, which expires on March 31, and some tax concessions on investments made with government or pension funds have been extended till the next financial year.

Promotion of electric vehicle use: Finance Minister Nimala Sitharaman said during her budget speech that the central government will expand the use of electric vehicles by strongly supporting electrification and manufacturing infrastructure.

He also said that the use of electric buses will be encouraged in the country's public transport systems.