FM proposes to extend date of incorporation for I-T benefits to startups till March 31 next year

Union Finance Minister Nirmala Sitharaman revealed in her Budget speech on Wednesday that the government recommended extending the deadline of incorporation for income tax benefits to start-ups from March 31, 2023 to March 31, 2024.

According to the Union Budget, the government also stated that it would extend the benefit of loss carry-forward for start-ups from seven to ten years after incorporation. During her Budget statement in Parliament today, the finance minister also announced the establishment of an agriculture accelerator fund to assist agri-start-ups by young entrepreneurs in rural areas.

This will strive to provide farmers with innovative and cost-effective solutions to their problems. It will also incorporate cutting-edge technologies to improve agricultural operations and boost production and profitability. Sitharaman also mentioned in her address that a similar digital document wallet will be introduced for businesses.

“An entity DigiLocker will be set up for micro, small and medium enterprises (MSMEs), large businesses and charitable trusts. This will be towards storing and sharing documents online securely, whenever needed with various authorities, regulators, banks, and business entities,” Sitharaman said.

According to government data, DigiLocker has onboarded over 14.6 crore people and issued 5.6 billion documents. Aadhaar cards, policy paperwork, PAN verification records, and two-wheeler insurance policies are among the most commonly issued documents.

The Finance Minister stated that a National Data Governance Policy will be released to give access to anonymized data in order to spur innovation and research by start-ups and academia. Sitharaman declared that An Entity DigiLocker will be established for usage by Micro, Small and Medium Enterprises, major businesses, and charitable trusts for securely storing and sharing documents online with various authorities, regulators, banks, and other business organisations whenever needed.