Union Finance Minister Nirmala Sitharaman on Monday proposed the extension of tax holiday for startups by one more year.
The move announced during the Budget presentation comes as India focuses on Aatmanirbhar Bharat mission aimed at making India a self-reliant nation.
In another boost for startups, Sitharaman said that one-person companies will be allowed to grow without any restriction on paid-up capital or turnover and to convert into any other type of company at any time.
The Union government announced tax relief for startups in the previous budget also as part of its efforts to boost the ecosystem in the country.
The Finance Minister last year also announced five-year tax holiday on employee stock ownership plan (ESOPs) for start-ups.