Exempt startups from filing returns for 5 years: Parrikar

Union Defence Minister says small entrepreneurs face the biggest harassment from government officials

Published: Feb 17, 2016
Exempt startups from filing returns for 5 years: Parrikar
Image: Mexy Xavier
Union Defence Minister Manohar Parrikar

Union Defence Minister Manohar Parrikar called for further exemption for startups, days after Prime Minister Narendra Modi launched the much-anticipated Start-up India action plan. “Small entrepreneurs face the biggest harassment from government officials... all startup firms should be exempted from filing returns in the first five years,” Parrikar said at an event organised by the Wadhwani Foundation in New Delhi on Tuesday. 
 
The minister said he was speaking as an entrepreneur and recollected the harrowing time he personally faced while running after government departments. The BJP-led NDA government has already exempted startups from capital gains tax, filing tax returns and inspection for three years.
 
Romesh Wadhwani, a recipient of the Forbes India Philanthropy Award, suggested the creation of National Jobs Advisor to the Prime Minister at the PMO, among other measures urgently required to help create 50 million jobs in India over the next 10 years. Wadhwani, founder, chairman and CEO of Silicon Valley-based Symphony Technology Group and a part of the Forbes 400 list, has already committed $1 billion to help the government, both central and state, skill the youth.
 
“The job advisor will be responsible for creating the overall master plan for job growth, frame special initiatives to add up to the plan and coordinate between the Cabinet ministries and state governments,” said Wadhwani. He said the signals from the prime minister on this issue were encouraging.

The Wadhwani Foundation released a white paper on job creation and mooted an integrated national ecosystem for entrepreneurship, education and mentoring, ease of doing business for startups, and enabling growth in existing small and medium enterprises (SMEs), among its various suggestions to give a fillip to high quality job creation. 

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  • Arun M Viswanath

    Good though from Mr. Parrikar. Yes, there should not be any bias between start ups. All should be exempted. Present flow out seems to be more slanting towards the favor of tech start ups - given the weightage for Innovation, and the mandate prescribing the vetting of Business Incubators, makes one feel it is farm-hatch for PEs interest. Why should Govt. mandate innovation ? If its not innovative, the market will throw the start up out. And if the entrepreneur is good enough, he will learn the feel of the market, on the run, and will tweak it accordingly. Atlast when the success happens, the product that has emerged will be completely different from the once conceived in the beginning. So, in each situation such as that, should the entrepreneur run to the govt anointed vetting agencies, to amend the changes. Looks funny. Now let us be very clear. Benefit of encouraging start ups is not to reap innovation, but to reap the employment opportunities created. The biggest job creators could be from startups in real estate, accommodations, automobiles,online marketplace, hyperlocal logistics and foodtech segments. And there it necessarily need not be technology dependent, but could be an effective operational efficiency. That could be attained by technology enabling, but need not be a whole some tech firm. So this stand up India is a good inspiration. And that\'s it. Inspiration. That\'s all. If the Govt wants to see changes, then better they stop profiling and keep the tax structures simple and inclusive. No vetting or betting....circus.

    on Apr 9, 2016
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