New Delhi | Jagran Business Desk: The small businesses must be empowered by tax relaxations and reduced compliance costs to ensure the spending on innovation, homegrown startup founders said ahead of the Union Budget 2022. New reforms, policy assistance and support mechanisms for establishing a focused approach in solving unmet financial needs through technology will significantly benefit the economy, the startup founders add.

‘Govt should give benefits for healthcare, opting for insurance’

Jitin Bhasin, founder and CEO of Gurugram-based FinTech startup SaveIN told Jagran English that the government must consider additional benefits for spending on preventive healthcare and special tax concession for the Health sector in particular.

“Startups have a significant role to play in strengthening the healthcare ecosystem across the country. 70 per cent of expense towards healthcare is borne out of pocket and penetration of health insurance is less than 1 per cent. The government should consider additional sops for individuals allowing them to spend on preventive healthcare, insurance, personal fitness and also consider special tax concessions for startups focused on the healthcare sector. A healthy India will have a direct impact on overall productivity of the workforce and hence a boost for country’s GDP,” said Jitin Bhasin.

To incentivise startups, the government had last year extended the eligibility for claiming tax holidays for startups by a year to March 31, 2022.

It also extended the capital gains exemption for investment in startups by a year to March 31, 2022, to boost funding.

Harshil Mathur, CEO and Co-founder, Razorpay told news agency IANS that it would also be desirable for the government to increase contribution to the Fund of Funds for Startups (FFS).

"Hassle-free loan disbursements, automation of tax and compliance, paper-less approvals, and incentives to adopt digital banking practices will also be welcome changes that can support the growth of MSMEs," Harshil Mathur said.

To incentivise startups, the government had last year extended the eligibility for claiming tax holidays for startups by a year to March 31, 2022. It also extended the capital gains exemption for investment in startups by a year to March 31, 2022, to boost funding.

- With inputs from IANS

Posted By: Mukul Sharma