Government made important announcements to strengthen startups and industries

Moving towards the ambitious goal of developed India, the government has made important announcements to strengthen startups and industries. Angel tax on startups has been abolished.

Angel tax was introduced by the Manmohan Singh government in 2012. Pranab Mukherjee was the Finance Minister then. According to this, when a non-listed company raises money by issuing shares to investors, the tax imposed on it was called angel tax. This tax was imposed on the premium that investors paid over the actual value of the shares. Startups and investors have long been arguing that it hinders innovation and funding. By abolishing angel tax, the government has given them a big relief.

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At the same time, eight major announcements have been made in the budget with funding, regulatory changes and technology support for the MSME sector, which has a 27% share in the GDP. These industries have been given a loan guarantee of Rs 100 crore. Under this, MSMEs will be able to take loans for purchasing machinery and equipment without pledging anything and without third party guarantee. The risk of these loans will be covered on the basis of pooling. A self-financed guarantee fund will be created for this. On the other hand, the government will now focus on making loan facilities accessible for MSMEs.