Seeking to promote budding entrepreneurs, the Commerce and Industry Ministry today held an hour-long question and answer session with start-ups.
Joint Secretary in the Department of Industrial Policy and Promotion (DIPP) Shailendra Singh explained the procedure for registration and claiming tax benefits.
Several start-ups asked questions related with criteria of claiming tax exemption under the Start-up Action Plan of the government and functioning of Rs 10,000 crore 'funds of funds'.
"Guidelines for this (funds of funds) would be released soon. Please keep getting updated with our website," the official replied to one of the question "what is funds of funds? How does it function?".
When asked about the progress on creating annual Rs 500 crore Credit Guarantee Fund for startups promised in Startup Action Plan, he said: "Guidelines are being drafted, keep following us on twitter and web portal".
Other queries being raised by some entrepreneurs included ways of registration and certificates and timeframe for a company to exit.
Commerce and Industry Minister Nirmala Sitharaman has urged the Finance Ministry to consider raising tax holiday for start-ups to seven years from the current three years to encourage entrepreneurs.
