the government has announced big relief in tax to companies investing in starups plan.
With the intention of speeding up the startup plan, the government has announced big relief in tax to companies investing in it. Now there will be no tax payment in startup companies for investing upto twenty five crore rupees. So far this limit was Rs. 10 crores. In addition, the definition of startup has also been changed, under which companies operating for ten years from their registration will now be able to invest. Earlier this limit was seven years ago. Now, companies doing hundred crore net worth or two and a half million rupees annually will be able to invest. Similarly, some other investment related investment rules have been made flexible. In this way, the scope of investors' growth and startup companies will get some speed. The Internal Trade Promotion Department is excited about this.
Actually, the startup center is an ambitious plan of the government. It was started with the intention that instead of running behind technically skilled youth jobs in the country, they would be able to start their work. New jobs will also be created. So far many young people were unable to start their business so that they had problems in raising their capital. But the existing government made separate provisions for this and encouraged them to start new jobs. The credit facilities were extended from banks. Loan related conditions were made flexible But as expected, this plan did not catch the pace. It was believed that companies will come forward for investment in the startup plan, encourage new enterprises and increase their business. But the encouraging results can not come out. Therefore, the limit for exemption of income tax has been increased for companies investing under the new amendment. It is believed that the speed of the startup plan will not only solve the problem of employment but will also facilitate the growth rate to reach the goal. Therefore, the government's concern to speed up startup is natural.
It is a good thing that the government has focused on improving the status of small and medium enterprises as well as encouraging new enterprises. In the past, small and medium enterprises were given unconditional loans up to one crore rupees. No bank can refuse to lend to such enterprises. In the same sequence, efforts are being made to push the startup. In this way, improving the condition of these units will increase employment opportunities. But the reality is that no business does not last much longer just on production. It requires a market. There is an emphasis on production under startup, but there is little scope for increased market consumption in that proportion. There is very little space for India in foreign markets too. Export rate is not satisfactory. Then there is competition from the products and services of those big companies, which are making them available at affordable rates. In view of this, investors are not excited. Any investor wants to invest his capital in the same venture, which has the scope for profits. Therefore, there should be an idea on the expansion of the market as well as facilitating investment path in startup.
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