The union government in the Union Budget 2023 has extended the period of incorporation for availing the benefits of Income Tax Act for startups.
Newly incorporated startups, until March 31, 2024, can now avail the income tax benefits, Finance Minister Nirmala Sitharaman said, while presenting the budget.
Currently, the benefits are available for startups that are incorporated till March 31, 2023.
Startups where there has been a change in the shareholding pattern will now be able to carry forward their losses for 10 years, from the date of incorporation.
"I propose to provide the benefit of carrying forward losses on changes in shareholding for startups from seven years of incorporation to 10 years," she said.
To reduce the pendency of appeals at the commissioner level, Sitharaman also proposed to deploy 100 more joint commissioners for quicker disposal.
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