2020 was arguably one of the toughest years for everyone. The businessmen, the working class, the entrepreneurs, the daily wage earners – everyone had a hard time making the ends meet. But there’s always light at the end of the tunnel. The Union budget 2021 has brought relief for a lot of industries and is poised to take India to greater heights. For start-ups and entrepreneurs, one key highlight from the budget is the capital gains exemption for one more year to 31 March 2022, and secondly they will be eligible to claim a tax holiday for an additional year. These extensions presented by the Honourable Finance Minister will provide a much-needed post-pandemic boost to the upstarts.
The good news has come like a breath of fresh air and many start-ups have decided to pass on the benefit to their employees who have stuck by them in the troubled times, many at lesser or half pay checks. ATechnos, one of the leading digital and tech transformation companies, is amongst the first to ensure that with the business picking up again, employees start getting their full salaries along with the tax benefits passed on by the Government.
Employee friendly practices like these will help start-ups to bounce back quickly and bring back the employee morale for a faster paced recovery. This will also enable start-ups to free up resources and invest in talent. Furthermore, an extension of the time limit to qualify for capital gains tax exemption by investing in start-ups would see more capital investment available by the first time investors.
Welcoming the Budget 2021, Mr. Abhinav Jain, Co-founder & MD of ATechnos said – “Staying true to PM’s vision of Aatmanirbhar Bharat, the Government has shown a special inclination towards building and nurturing the country’s start-up culture. A tax benefit might seem small in whole but for start-ups who believe in bootstrapping and building a great company, these benefits go a long way. But we don’t want to just use these benefits only to save money, we want to honour the sacrifices our employees and their families have done over the past year. So, we will be rolling the salaries back and passing the benefits to our employees. We hope other start-ups also follow this initiative and bring the cheer back in 2021.”
Jain also added “Incentivising incorporation of one-person companies (OPCs) will be an advantage to a lot of budding entrepreneurs.”