Budget 2019 expectations: Co-working startups demand rise in bank funding, lowering of income tax slab for employees from Modi-Jaitley
Co-working firms have demanded from the Narendra Modi government to hike bank funding amount from Rs 25 lakh to Rs 1 crore.
In a bid to make the new co-working start-ups more sustainable, co-working firms have demanded from the Narendra Modi government to hike bank funding amount from Rs 25 lakh to Rs 1 crore. They have also demanded from the ministry of finance to think over lowering the income tax slabs for its employees to reduce its cost. they said raising of bank funding would solve the financial crisis that new start-ups face after the first two-three years of inception.
Speaking on the matter Manas Mehrotra, Chairman, Incubex NestaVera told Zee Business online, "Co-working firms are also hoping that bank funding for start-ups is enhanced from Rs 25 lakh to Rs 1 crore in the budget 2019 to make available greater access to financial resources to start-ups. Also considering that startups do not earn the profit in their initial business years, we expect that the government can lower the income tax slabs for startup employees which will aid startups to reduce costs. Hence, we look ahead to some important tax exemptions that would give an enhancement to all existing and upcoming startups and which would increase demand for co-working spaces."
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Standing in sync with Manas Mehrotra, Rajeev Chawla, Chairman, IamSMEofIndia said, "Co-working has become a thriving ground for start-ups and is encouraging their growth within its ecosystem. To make this growth upbeat and continuous, co-work firms are looking forward to developments in the government’s smart cities initiative, as companies are looking for improvement in infrastructure to expand in metros and make a move into Tier II and Tier III cities too."
Abhishek Agarwal , Senior Vice President , The Judge Group — a technology staffing industry firm told, "Sufficient allocation of resources and preemptive actions is the need of the hour to cope with the unemployment problems in the country."
The Indian co-working industry has seen phenomenal growth in the last few years. However, there are some key changes that co-working firms are expecting around GST and taxation in Budget 2019.