Union Budget 2017: Entrepreneurs hail tax rebate on start-ups

New Delhi: Welcoming the Budget proposal giving major attention to skill and vocational training, the students and industry experts feel that it was much needed as large percentage of youth population enter the work force without the requisite skills.

Finance minister Arun Jaitley in his Budget proposal on Wednesday emphasised on energising youth through education, skills and jobs by establishing 100 more India international skill centres across the country and also courses in foreign languages. As per the proposal, the government also proposed to extend Pradhan Mantri Kaushal Kendras to more than 600 districts across the country.

“We support the government’s call to acknowledge the importance of skill learning and the allocation of `2,200 crore towards skill strengthening for industrial value enhancement (STRIVE). The need of the hour is to focus on youth and provide them with opportunities that will help them grow their skills and in turn contribute back to the development of the country,” said Talentedge CEO Aditya Malik.

According to a student Rajneesh, if the 4,000 crore programme Sankalp (Skill Acquisition and Knowledge Awareness for Livelihood Promotion Programme) is implemented in the right way then only the output will come. “One will not only receive an advanced skill training but also gain a much more market knowledge. It will push the skill India drive and help in creating more employment for the skilled youth like us,” he said.

Meanwhile, entrepreneurs have also hailed the Budget that altered the policy on tax concessions on start-ups calling it to be progressive and forward-looking. “The tax reduced for small and medium size businesses with an annual turnover of up to `50 crore from 30 to 25 per cent was a much needed tax reform. It will enable to improve infrastructure and adopt digital technology. We even appreciate the move to promote a digital economy as it will bring transparency in financial transaction and promote ease of doing business,” said Sudhir Singh, managing director, Marg Compusoft.

In his Budget address, Mr Jaitley announced the profit-linked deduction available to start-ups for three years out of five years has been changed to three years out of seven years.