Budget 2020: Startups up to Rs 100 crore turnover can enjoy 10-year tax exemption, says Sitharaman
- 4 years ago
During Budget speech, Finance Minister Nirmala Sitharaman informed that startups with turnover up to Rs 100 crore can now enjoy 10-year tax exemption.
"Startups offer ESOPs during formative years to attract and retain talented employees. ESOPs is a significant component of compensation, we welcome the clarity in ESOP taxability with options offered such as five years, leaving company or sale options whichever is earlier, larger startups I proposed to increase turnover limit form existing 25 crores to 100 crores moreover considering the fact that in the initial year, the startup may not have adequate profit to avail this deduction. I proposed to extend the period of eligibility of claim of deduction from the existing 7 years to 10 years," the Finance Minister said.
Finance Minister Nirmala Sitharaman presented the full Budget of the second term of the Narendra Modi government. Sitharaman presented the Union Budget for financial year 2020-21.
"Startups offer ESOPs during formative years to attract and retain talented employees. ESOPs is a significant component of compensation, we welcome the clarity in ESOP taxability with options offered such as five years, leaving company or sale options whichever is earlier, larger startups I proposed to increase turnover limit form existing 25 crores to 100 crores moreover considering the fact that in the initial year, the startup may not have adequate profit to avail this deduction. I proposed to extend the period of eligibility of claim of deduction from the existing 7 years to 10 years," the Finance Minister said.
Finance Minister Nirmala Sitharaman presented the full Budget of the second term of the Narendra Modi government. Sitharaman presented the Union Budget for financial year 2020-21.