Proposed relaxation for Start-ups
The budget 2020 has come up with certain proposed amendments relating to tax holiday given to eligible start-ups by increasing the eligibility criteria (from existing turnover of maximum INR 250 million to INR 1 billion) and widening the window for claiming tax holiday (i.e. increased from existing 3 years out of first 7 years to 3 years out of first 10 years). This amendment will give benefit and boost to start-up ecosystem and improve sentiments. Further, the tax events for ESOPs has been relaxed by deferment of employees tax liability by 5 years in case of eligible start-ups is also a welcome step.
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