Budget 2024: Tax Benefits for Startups Are Extenuated Until March 2025 by One Year

Budget 2024

Budget 2024: To encourage start-ups in the nation, the government has implemented a number of initiatives. Up to 1.17 lakh startups have received government recognition thus far.

Finance Minister Nirmala Sitharaman proposed on Thursday to prolong the tax benefit for start-ups and investments made by sovereign wealth or pension funds for an additional year, until March 2025, during the interim Budget presentation in the Lok Sabha. The minister stated during her budget address that some tax breaks for certain income generated by certain IFSC (International Financial Services Center) units, as well as those granted to start-ups and investments made by sovereign wealth or pension funds, will end on March 31, 2024.

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“As for tax proposals, I propose to maintain the same tax rates for direct taxes and indirect taxes, including import duties, in accordance with the convention. I do not propose to make any changes pertaining to taxation.” Nonetheless, on March 31, 2024, some tax breaks for investments and start-ups established by sovereign wealth or pension funds, as well as a tax exemption on a portion of specific IFSC units’ income, would expire. In the interim Budget, Sitharaman declared, “I propose to extend the date to 31.03.2025 to provide continuity in taxation.”