oppn parties Budget 2021 And Startups

News Snippets

  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
  • India has moved to the 40th spot in the innovation index, up 6 spots from last year
  • DGGI has alleged that top insurance companies, banks and NBFCs has committed a fraud of Rs 800cr by claiming input tax credit without underlying supplies
  • The Centre will borrow Rs 10000cr less than planned earlier due to good revenue collections
  • At $23.9bn, India's current account deficit widened to 2.8% in Q1, the worst in four years
  • Stocks continue to flounder on Thursday: Sensex sheds 188 points to 56409 and Nifty 40 points to 16818
  • The 36th National Games were declared open on Thusrday by PM Modi in front of a record crowd in Motera near Ahmedabad
  • Jasprit Bumrah most likely to miss T20 World Cup due to recurrence of back injury
  • PFI's political wing, the SDPI is on EC radar and action will follow soon if discrepancies are detected
  • Ashok Gehlot to meet Sonia Gandhi today, says all issues will be sorted out soon
  • Referring to the PFI ban, most Muslim organizations ask the government to take similar action against right wings organizations like the RSS, Bajrang Dal, VHP and the like
In a landmark order, Supreme Court rules that all women, married or unmarried, are entitled to safe and legal abortion up to 24 weeks of pregnancy as per the MTP Act
oppn parties
Budget 2021 And Startups

By Ashwini Agarwal
First publised on 2021-02-05 05:55:19

The Finance Minister has introduced several measures that help in doing ease of doing business and address the concerns expressed by startups in India. This is good as the entrepreneurial spirit must be unchained mainly because India is capable of giving birth to lakhs of startups, in technical space and outside it. Many of these startups have the potential to become unicorns if nourished properly and the measures in the Budget will help in that.

The Finance Minister has allowed startups to be constituted as One Person Companies (OPP). She has also allowed NRI (who were present in India for 120 days or more) to form OPPs in India. This is a good move which was being demanded for long by the startup ecosystem. Since startups usually begin with a new solution to a problem or fill in a demand in a novel way, founders are usually wary of sharing the fruits of their labour with outsiders, either as shareholders or on the board. These OPPs will now be able to operate without restriction on paid up capital or turnover and can convert to any other type of company at any time.

In the next measure, compliance has been eased for small companies. These companies were previously marked by having a paid up capital of Rs 50 lakh and a turnover of Rs 5 crore. This has now been revised to Rs 2 crore and Rs 20 crore respectively. This will increase the ease of doing business and remove compliance hassles for a large number of startups. Then, many startups are constituted as Limited Liability Partnerships (LLP). Previously, if these firms were found to come short on compliance, a criminal liability attached to all the partners. The new provisions do away with criminal liability for many such compliance provisions.

Tax holiday for startups has been extended by one year till March 2022. Similarly, capital gain tax exemption for investors in startups has also been extended by one year. Startups have also been exempted from the need to get their accounts audited if gross sales are up to Rs 10 crore and 95% of the transactions are through the digital payment mode. These and a few other measures like the merging of the SEBI Act and the Depository Act will bring relief for startups as angel investors will be less wary due to a transparent regulatory framework. A boom in startups will also create jobs and revive the economy. 

pic courtesy: cloudways.com