How startups can take advantage of new government policies to save taxes

The Government of India is promoting startups culture. The concept is already viral in west; the likes of US, UK, Canada and Germany etc see everyday a new startup. In the west, many startups hatch from colleges' dormitories. This is because dong business is easy there. When you create a startup you create new jobs.

Employment is essential to upcoming unemployed eligible youths. Today we have more universities than before, for obvious reasons each year more youth come out of these institutions loaded with a degree but unemployed. To provide jobs to rising number of unemployed youths creating more opportunities is essential, which is not possible with public-private partnership. This is why government is creating startups culture now.

When starting a company, there comes couple big questions like from where I get seed funds, how much I will earn from this business and what if I fail. When you are entrepreneur you need to distribute your worries over multiple heads in small chunks. A startup takes time to generate some real profits and oftentimes entrepreneur need to put earned revenue in the startup itself.

In present scenario, the good thing about starting a startup in India is you won't need to pay taxes for next 3 years. Make as much money as you can and invest it anywhere you wish. When you go to file a patent it costs handsome amount of money. But now you save 80% on patent fees. You can create more products and file more patents now. There are also plans to provide exemption from capital gains tax and to provide Rs 10000 crore dedicated funds for startups. Now borrowing loans for starting an startups shall be easier and also less costly.

To sum up if you have entrepreneurial skills you can benefit in following ways from new government policies:

1. Easy company registration: No need to run from pillar to post. The Prime Minister of India proposed for Self Certification and there shall be no inspection for three years. This means lots of time saved on paper work. Remember, entrepreneur loves time more than money.
2. Save On Taxes: Income earned from a startup business shall be non-taxable for next 3 years.
3. Save On Patent Fees: Now you can file your patent for 80% less cost.
4. Borrowing Funds shall be easy: There are plans to allocated Rs. 10000 crore funds. This means loans for starting a startup shall be easily and less costly.
5. Also government has plans to provide exemption from capital gains tax.