While announcing Budget 2021 , Finance Minister Nirmala Sitharaman rolled out a much needed relief for startups. In order to incentivise setting up of more startups, the Centre has proposed to extend tax holiday by one more year till March 31, 2022.
The exemption given on capital gains to startups was also extended by a year. Sitharaman said, "Tax holiday for startups extended by one year. Exemption on capital gains on investment in startups extended by one year."
She added, "In order to incentivise setting-up of more start-ups in the country, it is proposed to extend the eligibility period of claiming capital gains exemption for investment made in the start-ups by one more year to March 31, 2022."
Not only this, the Union Finance Minister also announced one year tax holiday for affordable housing till March 31, 2022. Sitharaman said, "In order to incentivise purchase of affordable house, it is proposed to extend the eligibility period for claim of additional deduction for interest of Rs 1.5 lakh paid for loan taken for purchase of an affordable house to March 31, 2022."
The Union Minister added a new tax exemption for notified Affordable Rental Housing Projects is in the pipeline to encourage Affordable Rental Housing for migrant workers. Sitharaman further added details of capital gains and interest from banks, post offices, etc. will be pre-filled to ease the IT returns filing procedure.