Startups seek tax sops available to manufacturing sector
Business new tamfitronics MUMBAI: Startups are seeking tax incentives for the sector in the upcoming Budget. The industry, for instance, is batting for similar benefits which have been extended to the manufacturing sector. "Manufacturing companies benefit from lower tax rates to boost activities in line with the 'Make in India' initiative. Similar tax incentives should be considered for startups, especially those working to strengthen the Digital India initiative.Startups invest heavily in R&D and tech infrastructure. Incentives such as weighted tax deductions and subsidies for R&D employee costs would significantly promote R&D activities in the startup ecosystem and create more employment opportunities," said Arpit Chug, CFO at Razorpay.Easing Esop (employee stock ownership plan) taxation for startups would go a long way in helping companies retain talent, said Mayank Kumar, co-founder & MD at UpGrad....
