Kunal Bahl, co-founder and CEO of Snapdeal, has a few ideas for the FM’s second Budget that will make the startup and angel ecosystem healthy. His request from the FM is two-fold which he thinks will be a game-changer.
In a Twitter post, the 36-year-old entrepreneur asked Sitharaman to give tax benefits to employee stock ownership plan (ESOPs) and unlisted equities. His tweet read, “ESOPs should be taxed at the point of liquidity, not exercise… Sale of unlisted equities should be taxed at the same rates as listed equities.”
If there are 2 asks from the startup & angel ecosystem from the budget, these would be: 1. ESOPs should be taxed a… https://t.co/Bi6gRf8qFb
— Kunal Bahl (@1kunalbahl) 1578920830000
According to a PTI report released last month, industry sources revealed that the government is expected to provide tax incentives to start-ups in the forthcoming budget to support the growth of budding entrepreneurs.The recommendations include extension of tax incentives to incubators supported under Atal Innovation Mission; reduction in GST (Goods and Services Tax) rates on AIF (alternate investment fund) management fees; and tax benefits on ESOPs.
The PM Narendra Modi-led government launched the Startup India initiative in 2016 to promote a robust startup ecosystem in the country. With this scheme, the government aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive to growth of budding entrepreneurs.