Since India’s economic growth rate has come down to just five percent, there is a stir in the deepening crisis in the siege of internal recession. Despite such turmoil and confusion, the government does not want to take any care in securing the interest of millions of startups and small entrepreneurs, especially in the country. That is why it was decided to ease the income tax rules for startups, and that is why the government is in talks with foreign lenders to provide loans of nearly $ 14.5 billion to millions of small firms.
Even though the Indian economy is not on track at the moment, even though tools such as coding and emulating have developed in Western countries, Indian startups are now making money from Western countries by creating products for the world, which has led to unemployment. It is also helping to sustain the Indian economy.
As per the instructions of the central government, the Income Tax Department is going to give relief to startup companies and give relaxation in their assessment and investigation rules. In a circular, the department has directed its officials not to demand additional tax from startup companies, which are accredited by the Department for Promotion of Industry and Internal Trade (DPIIT). This exemption will be applicable in cases where the investigation is limited to section 56 (2) (7B) of the Income Tax Act.