Entrepreneurs propose 1-3 years tax holiday under ‘Startup India’

Entrepreneurs propose 1-3 years tax holiday under ‘Startup India’

New Delhi, India | Red Newswire |Jan 10, 2016 Last Updated at 7:27 PM IST.

Young entrepreneurs have suggested that under its ambitious programme ‘startup India’ the government should give 1-3 years of tax holiday.

The programme will be launched by PM Modi on 16th January. The programme focuses on tech startups in education and healthcare sectors.

Archit Gupta of ClearTax said, “We think a 1-3 year tax and compliance holiday should be considered for startups. A single window clearance must be provided for setting up a company. Shutting down a company should also be simple.”

Sreevalsam Menon, CEO of Medikoe – a healthcare app service – said that the startup ecosystem will be validated by the government with this programme and thus will see more innovation and technology adoption. He added, “Focus should be more on rural job creation, agriculture sector, health-care business and businesses involved in doing socio-economic activities.”

Lokesh Bevara, CEO of 360Ride said, “Any sector wherein lot of government regulation is involved, will benefit. For example, cab industry, ride sharing industry, travel industry, logistics and food industry. Once the rules are in place it will help start-ups solve problems in a better way, which will eventually help their items/services to produce best results.”

Funtoot’s Rajeev Pathak the creation of the technology-centric companies is trending. He added, “We foresee the benefit reaching technology-centered companies initially. The focus right now is on them, the aura is built around them...all the businesses that are in nascent stage that require intensive hand holding, and that are in need of guidance, be it related to technology, or operational knowhow, should benefit from such initiatives.”

These entrepreneurs remarked how the country is turning into a knowledge –based economy and how this will strengthen the sectors. They said that the local ecosystem can be enriched by focusing on startups.

 Source: ET Bureau