New Delhi, 1/2: Announcing the Union Budget for the next financial year 2022-2023, Finance Minister Nirmala Sitharaman on Tuesday proposed several measures to promote the startup ecosystem in the country. He said in his budget speech that there will be a maximum surcharge of 15 percent on long-term capital gains on listed equity shares, units, etc., while the graded surcharge on other long-term capital gains is up to 37 percent.
“I am proposing to limit the surcharge on long-term capital gains arising on transfer of any asset to 15 per cent. This move will boost the startup community and reaffirm our commitment towards a self-reliant India with my proposal to extend tax benefits to manufacturing companies and startups.”
This proposal of the government was also supported by Saurav Sood, Practice Leader of International Tax, SW India. “The move will encourage long-term equity investment in startups and is beneficial for individual investors who have held shares for more than 12 months and are selling it,” he said.
He said that the activities of these startups would include inter-sectoral support for Farmer-Producer Organizations (FPOs), providing farm machinery on rent for the benefit of farmers, etc.