Latest News | Govt Proposes Time Extension of Incorporation for Eligible Startups by Five Years

New Delhi, Feb 1 (PTI) The government on Saturday proposed to extend the period of incorporation of eligible startups by five years for providing tax incentives, a move aimed at encouraging budding entrepreneurs.

Eligible startups established before April 1, 2030, would get a tax incentive for three consecutive years out of ten years from incorporation.

Also Read | Pune City Marathon 2025: 15,000 Runners To Take Part in Running Event on February 2, Check All Details Here.

"We continue to support the Indian startup ecosystem. I propose to extend the period of incorporation by five years to allow the benefit available to startups which are incorporated before April 1, 2030," Finance Minister Nirmala Sitharaman in her Budget speech said.

The move would help in providing greater liquidity for startups.

Also Read | Bank of Maharashtra Recruitment 2025: Apply for 172 Specialist Officer Posts at bankofmaharashtra.in; Check Eligibility, Application Fees and Steps to Apply.

Eligible start-ups can avail complete deduction of profit and gains for three consecutive years out of 10 years, beginning from the year of incorporation.

The benefits under Section 80-IAC of the income tax law will help such enterprises improve their liquidity, cash availability, and work capital, boosting growth and productivity, according to the Department for Promotion of Industry and Internal Trade (DPIIT).

It would also provide regulatory policy certainty and allow them to develop long-term plan for growth and scale-up.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)