Finance Minister Nirmala Sitharaman today extended the existing tax benefits for startups, which were offered redemption of taxes for three consecutive years, by one more year.

Presenting the Union Budget 2022, the finance minister said the startups have emerged as a growth driver for the economy. 

"Eligible start-ups established before 31.3.2022 had been provided a tax incentive for three consecutive years out of ten years from incorporation. In view of the COVID pandemic, I propose to extend the period of incorporation of the eligible start-up by one more year, that is, up to 31.03.2023 for providing such tax incentive," she said.

Addressing the joint session of Parliament President Ram Nath Kovind on Monday hailed the Indian startup success story and said the startups have led to six lakh new jobs countrywide. Kovind said that more than 60,000 startups have been set up in the country since 2016 in 56 different sectors.

The number of newly-recognised startups in India has increased to over 14,000 in 2021-22, from only 733 in 2016-17, said the India Economic Survey 2021-22, which was tabled in Parliament on Monday.

The survey also highlighted that a record 44 Indian startups achieved unicorn status in 2021, taking the overall tally to 83 with a combined valuation of $277.77 billion.