siliconindia | | FEBRUARY 20219demand and generate employment through investments in areas like infrastructure, finance, and healthcare. Also, the budget extends support to start-ups and MSMEs through tax exemptions and increase coverage of small companies threshold and, higher allocation towards MSME sector".Talking about the reformation regarding the ecosystem of Indian startups, FM Sitharaman stated that the govern-ment has extended the tax holiday for startups by one more year, providing a much-needed post-pandemic boost to the upstarts. According to Union Budget 2021-22, startups will get capital gains exemption by one more year to 31 March 2022. Not just that but startups also have one more year to claim tax holiday. Let's have a look what renowned leaders from various industries said about the reformation."The budget this year has given a significant support to the startup ecosystem that will help turbocharge their growth. The concept of OPCs with an option to convert into any other type of the company at any time, reduc-ing residency limit for an Indian citizen to set up an OPC from 182 days to 120 days, and allow also non-resident Indians to incorporate OPCs in India will certainly boost innovation," stated Seema Prem, CEO & Co-Founder, FIA Global.Ajai Chowdhary, Founder HCL, Board member IAN & IC member IAN Fund said that the budget will bring a huge boost for startups, and this will empower Atmanirb-har India. He stated "Budget focus to move India into global supply chain: welcome move towards Atmanirbhar India. Big boost for startups with reconfiguring of OPCs, redefinition of small businesses: brings ease of business under Atmanirbhar Bharat. The budget allocated for the agricultural sector will lead to infrastructural development and create opportunities for startups in the sector leading towards self-reliant India vision".Yogita Tulsiani, Director & Co-Founder, iXceed So-lutions stated "The year 2020 has seen a lot of ups and downs. The budget for 2021 has included various ways to bring the scattered businesses back on track. The Union Budget 2021 has focused on skill development by tieing up with countries like Japan and UAE. This would help in the overall development of the Human Resource sec-tor. With everything going digital, the launch of an online platform for gig workers will definitely ease the process of work. Startup sector is gifted with the Tax Holiday with the extension in eligibility for one more year till 2021. The tax exemption on capital gains till March 2022 will push more investments".Whatever the expectations are, let's hope for the best for the MSMEs and Startup ecosystem of India. After all, a resilient MSME sector and a developing and dense startup ecosystem will automatically translate into a sound economic future for the nation.
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