New Delhi, February 1: The government on Wednesday proposed to extend income tax benefits to startups incorporated till March 2024. Finance Minister Nirmala Sitharaman also said that the government proposes to increase the benefit of carrying forward losses for startups to 10 years.

"I propose to extend the date of incorporation for income tax benefits to startups from March 31, 2023, to March 31, 2024. I further propose to provide the benefit of carry forward of losses on change of shareholding of startups from seven years of incorporation to ten years," she announced. Budget 2023: India To Set Up Data Embassies for Digital Continuity With World, Says FM Nirmala Sitharaman.

Sugar cooperatives can claim payments prior to 2016-17 made to sugarcane farmers as expenditure, the minister added. New cooperatives that commence manufacturing activity till March 2024 would also attract a lower tax rate of 15 per cent, she said in the Budget speech. Budget 2023: Nirmala Sitharaman, Sixth Finance Minister to Present Budget Five Times in a Row.

To promote domestic manufacturing, she said the government proposed to reduce basic customs duty on seeds used in the manufacturing of lab-grown diamonds. The government would provide a higher limit of Rs 2 lakh per member for cash deposits and loans by Primary Agricultural Credit Societies, she added.