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Union Budget 2021: Centre leaves startups to be atmanirbhar, with little on table The extension of capital gains exemption for investment in startups has been applauded by one and all. February 01, 2021 / 07:29 PM IST With an aim to incentivise the emerging economy, Finance Minister Nirmala Sitharaman announced a slew of measures for startups and their investors including extension of capital gain tax, tax holidays for startups, easing norms for one person company, among others. While some of the moves were welcomed, the industry felt some were too little too late. The move to allow tax holidays for instance received a lot of criticism. Many argue that startups do not start making profits in the first few years of operations. So, the tax incentive will not be applicable to a majority of them and extending it by one year is unlikely to move the needle except for very few firms.

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