India Budget 2019: With the announcement of an exclusive channel for startups industry and welcome changes in much asked for angel tax exemption, it scored brownie points at least in this segment.
Union Budget 2019: Despite many industries and sectors finding Nirmala Sitharaman’s maiden budget just over satisfactory, if there is one sector that has found tremendous push in India Budget 2019, it is startups. With the announcement of an exclusive channel for startups industry and welcome changes in much asked for angel tax exemption, it scored brownie points at least in this segment. Further, the budget has also incentivised women entrepreneurs, thus garnering applause from the industry entrants. Here’s what different startups have to say about the first budget of Narendra Modi 2.0.
Among many welcome moves in the recently announced budget, what stands out is increased incentives for women entrepreneurs at the grassroots level, a new platform for bill payments for MSMEs and the separate channel announcement for startups, said Devendra and Tejas Parulekar, Co-Founders, SaffronStays. Also, “by extending the start-up age from 7 years to 10 years as well as the period of exemption for capital gains from the sale of house for investment in startups to March 31, 2021 investment in this industry will be highly encouraged.” they added.
However, the highlight of the Union Budget 2019 for startups “is the discussion on the Draconian Angel Tax that was introduced in 2012.
The first woman finance minister’s underscoring of the importance of women in every sector is commendable and “we would look forward to seeing these movements proliferate into sectors that are traditionally male-dominated and hope to see the government strike a balance and strive for greater inclusion in these sectors,” said Tanul Mishra, CEO, Afthonia Labs.
It is heartening to see the changes in Angel Tax and assurance of income tax assessment without scrutiny. This will create a fertile ground for innovation to mushroom and make it easier for innovations to attract the right partners in their growth journey, she added.
The fintech company believes that other than angel tax changes, “interest subvention for GST registered MSME on fresh or incremental loans is welcome,” said Ravi Vishwanathan, Director, PayMate. He also said that the announcement to attract 2% TDS on cash withdrawal from bank account exceeding Rs 1 crore in a year will provide a big boost to digital payments.
Moreover, the television channel for startups will prove to be a good platform for startups to air their views, market their products/services etc, in case the implementation works well, he added.