The upcoming budget 2017‑18 is much awaited by the SMEs, especially the startups. The government is likely to announce a loop of initiatives in order to provide support to the Indian SMEs and the startups. The initiatives might include broadening the tax‑free routine from 3 years to 5 years and to accelerate the procedural clearances.
This much‑awaited move is set to be launched in the Budget 2017‑18 and will come exactly a year after the launch of the program “Start‑Up India” by PM Narendra Modi. As per the initiative of the Start‑Up India, PM Narendra Modi had stated various provisions for the emerging businesses including the 3‑year tax‑free operation of the startup businesses in the country. However, this move faced multiple criticisms as the three‑year period was not feasible to yield the desired profits by the startups to pay the taxes. Therefore, with the five‑year tax exemption, the startup businesses are seeing a ray of hope with this year’s annual budget.
In addition to this, the government is also planning to make the founders quit or exit the companies in an easy manner as it would try to respond to the concerns about shutting down a particular company in a better way. There might also be announcements of effective and innovative measures to encourage the participation of the startups in the government purchases which are under the current situation quite rigid on the basis of turnover and experience.
Earlier, the startups have sought some relief from the government on income tax issues wherein the classification of the income of the businesses influenced the taxes imposed on them. This year, with the annual budget 2017‑18, the startups are looking forward to better reforms and flexible government policies under the Start‑Up Move of the Indian Government.