New Delhi : Keen to create the best ecosystem for start-ups, the government is likely to come up with more incentives for budding entrepreneurs in the upcoming Budget on the lines of Singapore. The Commerce Ministry has suggested several measures to the Finance Ministry in this regard, including easy conditions for availing of capital gains tax exemption and a further reduction in income tax on royalty for technical services.
In the recently announced action plan for start-ups, the government has announced exemption of capital gains tax. But the exemption comes with a rider that such entities would have to invest capital gains in the Fund of Funds recognised by the government. Similarly, there are issues concerning benefits in investments in listed and unlisted start-ups, the official said. “So, we need to ease these conditions in order to promote more and more investments in start-ups,” an official said, adding that all these moves are aimed at promoting entrepreneurship in the country.
Local tyre cos seek protection from China
Ahead of the Budget, domestic tyre manufacturers have called for imposition of anti-dumping duty and hiking of customs duty on cheap bus and truck radials from China, saying existing investments in the sector have been seriously threatened. In order to cut imports from China, the domestic industry also wants strict adherence to Bureau of Indian Standards mark on tyre products, especially those made by Chinese companies.
