Budget 2023-24: Tax Advantages for MSMEs, Startups, Cooperatives
As per the Union Budget, the government has pushed the threshold for microenterprises to help young entrepreneurs while offering the benefits of presumed taxation. This 2023–24 budget simplified various tax benefits for startups, cooperatives, microbusinesses, MSMEs, authorities, and commissions.
The Finance Minister of India, Nirmala Sitharaman, stated that “Entrepreneurship plays a vital role in economic growth. India is counted as the third-largest ecosystem for start-ups internationally”.
The government has initiated the budget for the Startup India Seed Fund Scheme, which is higher as compared to the previous budget of around Rs 100 crore. The total budget for the Fund of Funds for Start-ups (FFS) has been allocated at Rs. 1000 crore.
The government set a fixed higher limit of Rs. 2 per member for cash deposits and loans by the Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) and the Primary Agricultural Credit Society (PACS).
A National Data Governance Policy will be introduced to untie the innovation and research of startups. This policy ensures that the research and innovation eco-system has secured access to anonymized data from both the government and private enterprises.
To encourage startups in India, the government has introduced various schemes under the Startup India Initiative, including the Startup India Seed Fund Scheme (SISFS), the Fund of Funds for Startups (FFS) Scheme, and the Credit Guarantee Scheme for Startups (CGSS).
The Startup India Initiative was initiated by the government in 2016 with the purpose of building a strong ecosystem and promoting private investment in the entrepreneurial ecosystem.