Start-Ups Budget Friendly Tax Regime.

Balaghat, January 19, 2016 (Newswire.com) - ​Start-ups Budget In India- Friendly Tax Regime.

Government in the Budget next month will announce a friendly tax regime that will encourage setting up of Start-ups in the country, Finance Minister Arun Jaitely said on saturday.

Start-ups in India

Arun Jetly, Finance Minister

"We have already worked upon an entrepreneur friendly taxation regime. There are some steps, which can be taken up by notifications, which would be taken forthwith.

Others require legislative provisions, which can only come as part of the Finance Bill, when Budget is presented in order to create a friendly taxation regime for Start-ups" he said at the start-ups conference here.

Recognizing the need to encourage Start-ups, a fund was suggested in the Budget last year, he said.

He assured the Start-ups that both the banking system and the government will make the resources available to them.

Besides Start ups in India, the Finance Minister said the government will launch Stand-up India scheme under which, bank branches will lent to entrepreneurs belonging to SC/STs and women.

"On independence Day Prime Minister (Narendra Modi) announced the Stand-up India scheme. The Stand-Up India would be separately launched.

It is a programme, which envisages women entrepreneurs and entrepreneurs belonging to the SC,STs  (to get funding from banks.). These were the segments which were not throwing up entrepreneurs.

"Each bank branch, public sector or private sector, would actually adopt one in the SC/ST category and one in the women category. So they will adopt two such entrepreneurs and fund them to set up establishment," he said.

By funding trading or manufacturing establishment of this segment, almost 3,00,000 new entrepreneurs over the next two years will be created, he said. To promote Start-ups in India, the Finance Minister said the government is easing the process of doing business.

Another very significant difference of what makes it a land mark-event is a final break or the ultimate break that you have with the conventional license raj of India, "he said.

They did well to break off from it in 1991 but it was only partial. It was partial because who would be funded there was an invisible role of state, control over land permissions, foreign investment proposal and of course unless the political nods came to venture into newer areas which involved a lot of capital , a lot of energy going into it and an entrepreneur or investors was normally reluctant.

Under these circumstances, the Government had to explore new area and it is among those newer areas that it conceived of the MUDRA scheme.

Pradhan Mantri Micro Units Development Refinance Agency (MUDRA) Yojana that Government conceived of, is intended to target 25 percent of the bottom part of India's population.

"So people gets loan from Refinance agencies, public and private sector banks and other agencies. Earlier, they were being exploited by lenders at very high rates and now they get at bank rate and i must say the programme has been reasonably successful. In the last 4-5 months, almost  1.73 crore entrepreneurs have been enabled with loans," he said.

He expressed hope that the figure would be significantly higher by the end of this financial year. 'We are going to roll over that programme year after year and smaller entrepreneurs are being created by that process," he added.