Budget 2024: Finance Minister Nirmala Sitharaman is set to present the Union Budget on July 23, 2024. This budget holds significant importance as it is the first one of Modi 3.0. There are high expectations from the common people, with many experts predicting major announcements from the Modi government. However, the actual content of the budget will only be revealed on July 23. The entrepreneurial and startup sector also has substantial expectations from this budget.
Abolishing Angel Tax
Many experts believe that removing the angel tax has been a long-standing demand of the industry. They argue that eliminating the angel tax would greatly benefit new entrepreneurs. Initial investments are typically made in new companies with limited resources, and the current tax scrutiny discourages potential investors, thus hindering growth. It is hoped that the Finance Minister will address this issue in the upcoming budget.
Reducing Corporate Tax
The entrepreneurial sector hopes that the government will provide support through major measures such as reducing corporate tax rates for startups, simplifying tax filing procedures, and enhancing benefits under Section 80-IAC. These steps are crucial for fostering innovation and economic resilience.
Suggestions from Nithin Kamath
Zerodha’s founder, Nithin Kamath, shared his suggestions on social media platform X. He stated, “One of the biggest challenges the Indian economy faces is structural unemployment among youth. Growth will always be uneven unless this improves. Part of the solution is to do everything to encourage entrepreneurs, even in small towns and villages in India. VCs will never go to these areas. Which means other wealthy people are the best hope. One of the things I hope the budget addresses is section 54F. This section offers tax exemptions on the capital gains earned from the sale of any asset if the proceeds are reinvested in a residential property. Including investments in startups along with investments in residential property can make startup investing mainstream. Even though some people may misuse the law, the potential upside is infinitely greater and worth the minor risk.”
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