homestartup NewsBudget 2023: What it means for Startups?

Budget 2023: What it means for Startups?

Addressing that India is the third largest startup ecosystem in the world, the Finance Minister during her Budget 2023-24 speech, made promises in a bid to boost start-ups while stressing on an ‘Atmanirbhar Bharat.’ Here are the key takeaways.

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By Shruti Mishra  Feb 1, 2023 2:23:38 PM IST (Published)

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Budget 2023: What it means for Startups?
Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 in the Lok Sabha on Wednesday.  Addressing that India is the third largest startup ecosystem in the world, the FM made promises in a bid to boost start-ups while stressing on an ‘Atmanirbhar Bharat.’

Here are the key takeaways-
EASE OF DOING BUSINESS & TAX BENEFITS
  • Propose to extend income tax benefits from March 31, 2023 to March 31, 2024.
  • Benefit of carry-forward of losses from 7 years to 10 years
  •  More than 39,000 compliances have been reduced and 3400 legal provisions have been decriminalised.
  • Deploy 100 commissioners for small appeals, to be more selective in scrutiny.
  • BOOST FOR AGRITECH
    • Presenting the 'Amrit Kaal' budget, FM Sitharaman said that the government will promote agriculture based start-ups.
    • An Agriculture Accelerator Fund to be set up to encourage agritech startups. Entrepreneurs to bring innovative and affordable solutions for farmers’ challenges, will also enhance profitability and bring modern technology.
    • Digital Public Infrastructure for Agriculture to be built as open source, open standard, interoperable public good will enable inclusive farmer-centric solutions and help improve access to farm inputs, market intel, support for agri industry, startups.
    • The government had set up small and marginal farmers’ cooperative based economy development models and was able to digitalise around 63 primary agricultural credit societies. Modern bylaws PACS were formulated enabling them with multipurpose PACS.
    • To set massive decentralised storage capacity that will help farmers to store their produce and realise remunerate prices.
    • Government will also help set up cooperative societies, primary fisheries societies, dairy cooperatives in uncovered panchayat villages in the next 5 years.
    • The government proposes to increase the agricultural credit target to Rs 20 lakh crore with a focus on animal husbandry, dairy and fisheries. The agriculture sector of the country has been growing at an average annual growth rate of 4.6 percent in the last six years. "Will launch a sub-scheme of the existing PM Matsya Sampada Yojana scheme to improve value chain efficiencies," the FM said.
    • BOOST FOR BIO-SCIENCES STARTUPS
      • Over the next 3 years, the government will set up 10,000 bio input resource centres and enable 1 crores farmers to adopt natural farming.
      • MAKE ‘AI’ IN INDIA
      • Three centres of excellence for artificial intelligence to be set up in top educational institutions to enable 'Make AI for India' and 'Make AI work for India'.
      • DIGITAL PUSH 
        • The government will set up a National Data Governance Policy to help academia and startups with anonymised data.
        • THE MSME FACTOR
          • Revamped credit guarantee scheme will take effect from April 1, 2023 through the infusion of Rs 9000 Cr in the corpus. This enables additional collateral-credit of Rs 2 lakh crore to MSMEs.
          • 95 percent of the forfeited amount will be returned to MSMEs for contract failure during COVID-19.
          • FOR ONLINE GAMING STARTUPS
            • Removing the minimum threshold of Rs 10,000/- for TDS and clarifying taxability relating to online gaming.
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