The Union Budget for 2021-22 was presented by Union Finance Minister Nirmala Sitharaman today morning (Feb 1). The very first paperless budget to be ever presented, it brings a promise to promote the economic resurgence across India. The Indian startup sector was also looking forward to a positive budget that would initiate the revival of the sector post the pandemic onslaught.

Not having disappointed India INC the Union budget brought with it several pieces for good news for the startup and MSME sector. It was announced that the tax holiday for startups has been extended by one more year and startups will get capital gains exemption by one more year to 31 March 2022.

"In order to incentivize startups in the country, I propose to extend the eligibility for claiming tax holiday for startups by one more year to March 31, 2022," said Finance Minister Nirmala Sitharaman.

“In order to incentivize funding for the startups, I propose to extend the capital gains exemption for investment in startups by one more year to March 31, 2022” she added.

It is a much welcome move post the economic hardships that young startups have had to face during 2020 and will provide firms with a boost. Indian startups and VCs have appreciated the said move and are hopeful for the benefits that this rope of extension will bring to the venture investment sector.