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Budget 2021: FM extends tax holiday, capital gains exemption for startups

Experts say since most startups are loss making, tax holiday will have limited immediate impact on them

Finance Minister Nirmala Sitharaman holds a case containing a tablet device, during the Budget Session of the Parliament
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The government announced some other direct and indirect measures in the Budget for the startup ecosystem.

Samreen Ahmad Bengaluru
Finance Minister Nirmala Sitharaman on Monday extended the tax holiday for startups by another year to March 2022 while presenting the annual budget. Along with this, capital gains exemptions have also been extended for startups by another year.  

According to experts, since most startups are loss making, tax holiday will have limited immediate impact on them. 

“The government has always focussed on boosting the startup ecosystem, attracting investments and creating jobs. But as we know most startups are loss making, so tax holiday has limited immediate impact,” said Ankur Bansal, Co-founder and Director, BlackSoil.

“Capital gains is exempt currently for