Startups get tax holiday for 1 more yr-Union Budget 2021

The Union Budget 2021-22, the most awaited announcement of the year which the industrialists, leaders, entrepreneurs, manufacturers and common man were eyeing on. India is the home for electric vehicles startups. We have witnessed many EV startups emerging every day that manufactures electric vehicles and their components such as batteries and battery management systems. Let us now read more detail about Startups gets a tax holiday. 

Startups get a tax holiday

The Finance Minister Nirmala Sitharaman in her budget for this year did not announce any scheme or policy for electric vehicles. After the budget announcement, there is a great disappointment among the EV manufacturers and the people. 

Incentives for Start-ups

But for the start-ups, the government has announced the tax holiday. In order to support and incentivise the startups in the country,

• The FM has proposed the eligibility for claiming tax holiday for start-ups by one more year i.e., till 31st March 2022. 
• The capital gains exemption for investment in start-ups has also extended to incentive funding for startups by one more year i.e., till 31st March 2022.

Hydrogen Energy Mission 2021-22

The Centre will also launch a Hydrogen Energy Mission in 2021-22 for generating hydrogen from green power sources. It holds around 6 metric tonnes (MT) demand per annum and can increase to around 28 MT by 2050 to reduce the carbon footprints in the country.

Hydrogen play’s an important role in heavy-duty, long-distance transport. It will also help in the development of fuel cell vehicles.

Solar Energy & Renewable Energy Development

The government has also announced a capital infusion of ₹1,000 crores to the Solar Energy Corporation of India and ₹1,500 crores to the Indian Renewable Energy Development Agency.

To encourage domestic production, the duty on solar inverters have been raised from 5% to 20%, and on solar lanterns from 5% to 15%. Solar panels are also very helpful for the extending range purposes.

Solar energy and hydrogen power can contribute to the adoption and growth of electric vehicles in the country. 

Voluntary vehicle scrapping policy

Apart from this, the government has emphasised on the voluntary vehicle scrapping policy to phase out old and unfit vehicles that will indirectly is a big boost to the electric vehicles industry. 

Also Read: Vehicle scrapping policy in India

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