# Union Budget 2021: Govt extends tax holiday for startups until March 2022 | Tech News (HT Tech) > Budget 2021-22 aims to give a fresh boost to startups in India. # Union Budget 2021: Govt extends tax holiday for startups until March 2022 ## Budget 2021-22 aims to give a fresh boost to startups in India. Aug 21 2022, 14:49 IST ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook.png) ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook-hover.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Share.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Shareclicked.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp-hover.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter-hover.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook-hover.png) ![Bookmark](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmark.png) ![Bookmarked](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmarked.png) ![Union finance minister Nirmala Sitharaman presents the Union Budget 2021-22 in Lok Sabha in New Delhi on Monday. (ANI)](https://images.hindustantimes.com/tech/img/2021/02/01/1600x900/a17aaee4-6459-11eb-9024-f0893c954548_1612164947491_1612164958355.jpg) Union finance minister Nirmala Sitharaman presents the Union Budget 2021-22 in Lok Sabha in New Delhi on Monday. (ANI) (HT_PRINT) ![Author Photo](https://images.hindustantimes.com/tech/static/revamp/images/png/HTTech-new-circle-logo.png) ### By HT TECH Finance minister Nirmala Sitharaman on Monday announced the extension of tax holidays for startups by one year until March 2022 as part of the Union Budget 2021-22. The minister also announced extending capital gains tax exemption by one year. The government has also proposed to incentivise incorporation of one-person companies (OPCs). The move is likely to help smaller startups and innovators. > #Budget2021 #AatmanirbharBharatKaBudget Highlights Big boost for startups. Incorporation of one person companies to incentivize innovation in startups. Reducing residency limit for Indian citizen to set up 1 person company from 182 to 120 days- FM Shri @nsitharaman— Digital India (@_DigitalIndia) February 1, 2021 The government plans to incentivise these OPCs by allowing them "to grow without restriction on paid up capital and turnover, allowing conversion into any other type of company at any time, reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days, and allow also non-resident Indians to incorporate OPCs in India". Also read click here. "This will be a big boost for startups," Sitharaman said while presenting the Union Budget. Startup reactions As expected, the startup community has hailed the decision. “This year’s budget has empowered value creators to invest in India’s growth story. Provisions such as allowing the creation of OPC's without restrictions, extending the claim period for a tax holiday for startups and extending the capital gains exemption to encourage investments will help promote the growth of India’s already burgeoning startup ecosystem. Apart from this, reduction in compliance burdens through single registration and licensing, and filing of online returns is also a step in the right direction. Finally, the FM’s speech highlighted the importance of promoting inclusion and participation of all in the workforce. Provisions that will allow women to work in all categories with adequate protections helps recognize their valuable contributions to furthering the growth of our economy,” Kunal Shah, Founder, CRED said. “The budget was awaited with a lot of expectations and of that most have been met. Infrastructure & healthcare were the main spotlights of budget 2021 and a large investment has been allocated for the expansion of the road network. Also, just like it was predicted, Startups were given importance in this budget as well. The tax-exempt on the revenue, as well as investments, have been increased by one more year which will be beneficial for the startup growth in the country. On the other hand, the investment in MSMEs and the moratorium on loans of up to 2Cr will also play a crucial role in for the Indian corporates. Privatization of several government-related sectors such as ports will also add to the economic growth and employment generation,” Lokendra Ranawat, Founder & CEO, WoodenStreet said in a statement. “Incentivising incorporation of one-person companies (OPCs) will definitely benefit a lot of entrepreneurs. Easing restrictions on Paid-Up capital and easy conversion to Pvt Ltd or other types of company is a cherry on top,” said Snehil Khanor, CEO & Co-founder, TrulyMadly. “With the government proposing to provide tax incentives for startups and reducing compliances for one-person companies, we at Octro believe that the government’s decision will benefit start-ups and innovators in India. India is amidst a boom in digital technology adoption and the budget will help raise India’s economic footprint in the global scale and help create greater opportunities for companies to invest and develop services in the country," said Saurabh Aggarwal – CEO, Octro Inc. "Steps like the compliance and tax holiday given to startups, setting up of a fintech hub at GIFT city augur well for ‘Digital India’ and ‘Make in India’ initiatives. FM’s proposal to use data analytics, artificial intelligence, machine learning for the Ministry of Corporate Affairs is an encouraging move for the tech ecosystem. The suggestion to introduce AI-based features in MCA 21 3.0 to address compliance needs of startups are thoughtful steps in creating a conducive business environment for entrepreneurs. The push for digital payments and the announcement of a fintech hub shows the government’s seriousness for digitalisation of banking. We do hope Indian banks will pick on the sentiment and embrace thorough digitalisation of their processes in collaboration with the flourishing fintech ecosystem," Ankit Ratan, Co-founder and CEO of Signzy. “The “Tax holiday” that was proposed in the budget is a highly positive step for many startups as they continue to be tax exempt for another year. This is also coupled with a capital gains exemption that is aimed at providing ease for facilitating greater funding and investment. Startups can now use these funds for hiring much needed technical expertise(particularly the case for the tech sector), planning expansion, better service delivery, etc. In a post COVID economy, this can be beneficial for many startups that are aiming to rejuvenate and get back on their feet. To add to this, there have been significant incentives provided to one person companies. The budget removes restrictions on paid-up capital and turnover, thus easing the burdens on innovators and entrepreneurs. Within the tech sector there are many startups that have taken shape, and ties in with the Atmanirbhar Bharat vision, the domestic ecosystem can now save valuable revenue and grow without worries regarding tax burdens,” said Kazim Rizvi, Founding Director, The Dialogue. “Many startups in this lockdown started from the ideation stage. In order to do the pivot of their projects,seed fund would be very much beneficiary to them as they would be able to consume that amount for pilating of their ideas and to move to the idea stage to the prototype stage,development stage and hence would be able to start making sales.So this seed fund is very helpful for those startups pan India. Also this would encourage more and more startups to get recognised by the startup government of India. That is the base if a startup is getting registered in the DIP, it is getting these benefits, last year it was 41000, we would be able to see more numbers, crossing more than 60000 this year for sure,” said Priyanka Madnani, CEO and Co-founder, Easy to pitch. “The exemption of taxes would definitely benefit the startups, as we all know that it takes a lot of tax to be given to the government when investment happens.So this would give a rebate till March 2022.There are many more plans that NITI Aayog has brought up this financial year which would be using these funds,so those who have stopped their operation could utilise this benefit and come back to action,” she added. Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel. 01 Feb, 13:07 IST startups ![HT Tech Awards](https://tech.hindustantimes.com/ht-tech-power-list-awards-2026/httech-awards-banner-new.webp) ### Related Stories 07 Oct 2026 71,612,164,907,629 NEXT ARTICLE BEGINS ![View all](https://images.hindustantimes.com/tech/static/revamp/images/png/view-all-icon.png) ## Tips & Tricks ![Ghibli-style art](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### How to turn your photos into Ghibli-style art with ChatGPT for free: Step-by-step guide ![How to create an invitation using iPhone’s new Apple Invites app- Step-by-step guide](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### How to create an invitation using iPhone’s new Apple Invites app- Step-by-step guide ![Apple TV app arrives on Android phones and tablets: What you get and how to install it](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Apple TV app arrives on Android phones and tablets: What you get and how to install it ![Vodafone Idea OTT plans](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Vodafone Idea users can now stream 17 OTT apps with one subscription: Here's how ![Android data transfer methods](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### How to transfer data from one Android to another using Google backup, USB-C cable, and more ## Editor’s Pick ![iPhone 16e launched with A18 chip, Apple AI—bringing flagship power on a budget: Check specs, price](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iPhone 16e launched in India: All details about the new budget mobile from Apple ![DeepSeek was founded in China with only a fraction of the budget of the top AI companies in the US.](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### DeepSeek AI: How it works, who’s behind it, how it’s different from ChatGPT, and its big US market impact explained ![iPhone 17 Air likely to get this feature that iPhone 17 Pro models may miss out on](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iPhone 17 Air likely to get this feature that iPhone 17 Pro models may miss out on ![Google Whisk AI explained: How remixing works, availability, and how it differs from Gemini](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Google Whisk AI explained: How remixing works, availability, and how it differs from Gemini ![iOS 18.4 beta arriving soon: Know why it is the biggest iPhone update](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iOS 18.4 beta arriving soon: Know why it is the biggest iPhone update ## Trending Stories ![Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order ![Infinix Note 50s 5G+](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC ![Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more ![Apple Intelligence AI training](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Apple plans to train AI using your on-device data without accessing personal content or emails: Report ![CMF Buds 2](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside keep up with tech ![Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-facebook.png) ![Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-twitter.png) ![WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-whatsApp.png) ![Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-facebook.png) ## Gaming ![Check out these five gaming monitors under ₹20,000,](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Top 5 gaming monitors under ₹20000 you should consider ![gaming consoles](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Grab gaming consoles at discounted rates during Amazon Great Indian Festival: Up to 72% off ![Pokémon GO Wild Area 2025](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Pokémon GO Wild Area 2025 to bring Grimmsnarl family, Shiny Hatenna, and global challenges ![Shade Silver](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Shade Silver free on Steam for a limited time: Here’s how to get it ![Call of duty](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Call of Duty: Black Ops 7 skips Switch 2 at launch, release date and price leak ![View all](https://images.hindustantimes.com/tech/static/revamp/images/png/view-all-icon.png) ## Trending News ### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order ![Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order](https://images.livemint.com/static/static/1x1_img.gif) ### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC ![Infinix Note 50s 5G+](https://images.livemint.com/static/static/1x1_img.gif) ### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more ![Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more](https://images.livemint.com/static/static/1x1_img.gif) ### Apple plans to train AI using your on-device data without accessing personal content or emails: Report ![Apple Intelligence AI training](https://images.livemint.com/static/static/1x1_img.gif) ### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside ![CMF Buds 2](https://images.livemint.com/static/static/1x1_img.gif) ## Trending Gadgets Mobiles Laptops Tablets ![HT Tech](https://images.hindustantimes.com/tech/static/revamp/images/png/HT_tech-new.gif) - https://tech.hindustantimes.com/tech/news/union-budget-2021-govt-extends-tax-holiday-for-startups-until-march-2022-71612164907629.html