Benefits given under Centre’s two initiatives:
StartUp India’ that provides tax benefits to startups and ‘StandUp India’ that is focused on providing credit to Dalit entrepreneurs.
Record under StartUp India
Ironically, the official figures show that of a total of 728 applications received under Startup India till Monday, the government has recommended only one for tax benefits.
Of total applications received, it categorised 180 applicants as startups (whose applications were found to be complete), but found that only 16 applicants had been incorporated after April 1, 2016, the cut off date stipulated in the Finance Act 2016 for consideration for tax benefits.
The Finance Act provided income tax exemption for 3 years in a block of 5 years for the startups (Companies and LLPs) incorporated between April 1, 2016 and March 31, 2019 and certified as eligible by the Inter-Ministerial Board. In its meeting held on June 28, 2016, the Board recommended the tax benefits for just one of the three applications put up to it for consideration.
Reord under StandUp India Scheme
The StandUp India scheme, launched on April 5, 2016 by Mr. Modi, aims to facilitate bank loans of Rs.10 lakh-Rs.1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) and one woman beneficiary per bank branch for setting up a greenfield enterprise in trading, services or manufacturing sector.
The record for StandUp India is slightly better. Of the total Rs 1360.11 crore disbursed in loans till July 15, Rs 179.15 crore, or 13.17 per cent were given to Scheduled Castes (Dalits). The rest went to women and Scheduled Tribes, the other target beneficiary groups.