Finance Minister Nirmala Sitharaman’s announcement during the Union Budget 2024 session on February 1st marked a continuation of key policies aimed at fostering entrepreneurship and innovation in India. Among the notable provisions, Sitharaman extended tax benefits to startups, sovereign wealth fund investments, and exemptions for businesses in the International Financial Services Centre (IFSC) at GIFT City until March 31, 2025.

The extension of tax benefits for startups has been a recurring feature in recent Union Budgets, providing crucial support to emerging businesses during their formative years. Under the tax benefit schemes, eligible startups enjoy a 100 percent tax rebate on profits for three years within a total operational span of ten years, as long as their annual turnover remains under Rs 25 crore.

This initiative aims to alleviate the financial burden on startups, enabling them to focus on growth and innovation, particularly in the nascent stages of their operations. By facilitating access to working capital and reducing the tax burden, the government seeks to nurture a conducive ecosystem for entrepreneurial endeavors across the country.

During her Budget speech, Sitharaman also unveiled several measures specifically tailored to support startups. One significant announcement included the establishment of a Rs 1 lakh crore corpus dedicated to providing low or nil interest rate loans. This initiative aims to incentivize the private sector to invest in research and innovation within sunrise sectors, driving technological advancement and economic growth.

Additionally, the Budget introduced a new scheme aimed at promoting deep-tech innovation in the defense sector, emphasizing the government’s commitment to leveraging technology for national security and strategic advancement.

Sitharaman also commended the effectiveness of Aadhaar-based digital identification systems, citing direct benefit transfers totaling Rs 34 lakh crore via PM Jan Dhan accounts. By leveraging digital platforms, the government has successfully curbed leakages, resulting in savings of Rs 7.4 lakh crore. This underscores the transformative potential of digital governance in promoting financial inclusion and efficiency in welfare delivery mechanisms.

The Union Budget 2024 reflects the government’s steadfast commitment to nurturing entrepreneurship, fostering innovation, and advancing digital governance in India. By extending tax benefits and introducing new schemes tailored to support startups and technological innovation, Sitharaman’s announcements signal a proactive approach towards driving economic growth and prosperity in the country.

As India embarks on a journey towards becoming a global hub for innovation and entrepreneurship, the policies outlined in the Budget serve as a catalyst for realizing this vision, empowering startups and businesses to thrive in a dynamic and competitive landscape.

By Admin

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