“An inter-ministerial committee has been constituted to monitor the implementation of this action plan,” he said.
On the package of tax concessions offered to startups, Jaitley said there is an exemption from payment of capital gains tax if one liquidates a capital asset in order to invest in a startup.
“That is also part of the package itself. That in itself is an incentive to a potential investor,” he said.With regard to those who invest in startups, the minister said since it is an innovation, it is a hit and trial.He said there are startups which will fail, startups which will have to exit and startups which will succeed and their valuations will go up phenomenally.”Therefore, some kind of flexibility and elasticity has been given to them. They can choose a block of three years out of the five years in which they are entitled to an exemption from payment of taxes and that amount of flexibility is a part of the tax concession package given to the startups,” he said.