What are the benefits of the Stand-Up India scheme?
When the government launches any schemes, it's main motive is to benefit or help the citizens and it is same in the case of "Stand Up India" scheme. Following are the benefits of this scheme:
The main motive of this scheme is to motivate new entrepreneurs to build their business in order to minimize unemployment in India.
This "Stand Up India" scheme will help entrepreneurs to eradicate operational, legal and other institutional obstacles as well.
This scheme not only helps those people who are in the initial stages of their entrepreneurial enterprise but also help those people who have already set up their companies but still are facing the start-up category.
This scheme also helps to provide the post set up aid to the consultants.
The SC/ST and/or female entrepreneurs in India find it difficult to get funding for their start-ups. So, it'll help them to get fund for their start-ups.
Entrepreneurs need not worry more about how to pay back the amount which they have taken as a loan as they need to pay off the loan over a period of seven years, reducing the pressure of repayment for the borrowers. However, a certain amount has to be paid back every year as per the borrower's choice.
The provisions under this scheme include help for both SC/ST and women borrowers, which is throughout the process, from the pre-loan stage to the operating stage.
Exemption from income tax for the first three years on commencement of business.
In order to withstand the growing demand, the Stand Up connect centres would be opened at the offices of SIDBI and National Bank for Agriculture and Rural Development (NABARD).
Tax Benefits/Incentives in Stand Up India
The applicants will receive 80% rebate after filing the patent application form. This form is to be filled only by startups, and the benefits are more for them as compared to other companies.
An inclusion of Credit Guarantee Fund exists, and the entrepreneurs can enjoy relaxation in Income tax for the first three years.
With regards to Capital Gain Tax, the scheme provides complete relaxation for the entrepreneurs.
For the entities who have qualified for the program will further have benefits like the redemption of tax on the profits earned.
These tax benefits will ease the entities during their initial startup phase- it reduces the burden of paying heavy costs for taxes.