In her budget speech Finance minister Nirmala Sitharaman that “ease of doing business” and Tax incentives for start-ups will be extended by one more year. This step will prove to be a boon for the Indian start-up sector. The tax benefits for the businesses that were earlier decided to be for 3 years will be extended for one more year until March 31 2022. “Start-ups have emerged as a growth driver for the economy. Tax incentives for start-ups increased from three years to four years of incorporation, in view of the pandemic,”- said Sitharaman
Along with this the minister also extended the capital gains tax exemption for start-ups by another year till March 31, 2022. Start-ups in India had raised a $42 billion in 2021. During this time, there was a steep rise in the number of Unicorns in India (companies with a valuation of more than 1 billion). Almost 42 new companies became part of this club, taking the tally to 83 unicorns.