EY on Budget 2025: Key amendments proposed in Union Budget 2025 for the Startup sector

The Hon’ble Finance Minister presented the Union Budget 2025 on 01 February 2025 in the Lok Sabha. We bring you the key amendments proposed in Finance Bill 2025 with respect to Startup Sector.

The Hon’ble Finance Minister presented the Union Budget 2025 on 01 February 2025 in the Lok Sabha.

The Budget continues the Government's commitment to strengthening India's start-up ecosystem by boosting funding, encouraging innovation and bringing in simplification.

To this end, a fresh contribution to the existing Start-up Fund of Funds has been announced, along with the exploration of a Deep Tech Fund of Funds to support next-generation start-ups. Window for new startups to claim tax holiday has been proposed to be extended till 31 March 2030. Additionally, the Budget proposes rationalization measures such as the revision of TDS and TCS provisions, transfer pricing, and measures to expedite mergers, all aimed at reducing procedural burdens.

A new Income Tax Bill will also be shortly announced, which is aimed at simplification, tax certainty and reduction of litigation.

We bring you a detailed analysis on tax and regulatory amendments announced by the Hon'ble Finance Minister in her budget speech in respect of startup sector. 


Download: Union Budget 2025 - Start up sector Highlights