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  • “Union Budget 2022-23 will benefit the Startup Founders and Investors, “says Amarnath Sankar, CEO of CAT Productions

    Published on February 7, 2022

    The Union Budget 2022-23 has been a talk among the startup founders & investors for all the right reasons. The Modi Government is all about Atma Nirbhar Bharat, and this year, Budget Plans have covered all the sectors ranging from infrastructures to education initiatives.

    Many Entrepreneurs have different views regarding the Budget plans. However, on asking Amarnath Sankar his thoughts on the Union Budget 2022-23, he says, “Startup Founders & Investors are definitely to benefit from Union Budget 2022-23. Currently, the Indian Startup ecosystem is ranked Number Three globally. It seems the Government has the vision to take it to the 2nd rank in the long run.” 

    One of the major points addressed in the Union Budget 2022-23 is the long-standing demand of new-age companies that wanted share sales of unlisted firms to be at face value with those of the listed ones. Only the surcharge levied on unlisted share sales has come down from 37.5% to 15%. However, the tax rate remains at 20%. 

    Amarnath Sankar, the founder CEO of CAT productions, said that the revised maximum surcharge on LTCG ( long-term capital gains), capped at 15%, is very significant. In addition, it slices down the effective tax rate to 23.92% against the old rate of 28.5%

     “This will apply to domestic investors, employee stock option holders, and the founders.” He also mentioned that “Unlisted securities are taxed at 2.4 times the rate of their listed counterparts on long-term capital gains.” 

     LTCG being a step closer to having complete alignment for listed as well unlisted entities & this is a long-standing demand. 

    Amarnath views the reduction in surcharge as a progressive and kind step by the Government. “More money will come back to the ecosystem, which can be further invested back into the startups,” he added. 

    The Government of India has decided to set up a dedicated fund for Agri-Tech startups. In addition, a scheme through PPP[public-private partnership] model will be launched for the delivery of digital & hi-tech services to farmers with the involvement of public sector research & extension institutions along with private agri-tech players & stakeholders of the Agri-value chain.

    Amarnath Sankar believes that the Union Budget 2022-23 is remarkable in the field of defence, where the Government plans to open up the defence research & development for industry, startups & academia with 25% of the defence R&D budget earmarked.

    “Implementing the Union Budget 2022-23 will surely bring up many positive changes to the economy. Most of these financial decisions are pointing towards a progressive nation walking bit away from its olden days ” He added. 

    Hashtags:
    #unionbudget2022 #startups #amarnathsankar #nirmalasitharaman

    Link: https://www.instagram.com/amarnath_sankar/

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