Budget 2017: What's in store for startup founders & their employees 

 However the Budget may not be too bad for digital startups. If you are running any online startup, lets see how it impacts you. Although for startups, this year's Budget didn't hold any positive surprises, the digital universe lucked out. If you are running any online startup, lets see how it impacts you. If you are a startup founder running a ‘profitable’ business with a turnover of less than Rs 50 crore annually, you should feel happy that the tax rate effectively is now cut to 25 percent from 33 percent earlier. However, if your startup is yet to make profits or does not have a roadmap like the usual ventures in ecommerce, food tech or hyperlocal logistics, you may not have a reason to cheer. The Finance Minister has extended the window for claiming a tax benefit from five years to seven years now. Now, your venture can claim a tax holiday on any three years starting April 2016 onwards.

 But if your startup was incorporated prior to year 2016 - too bad. There will be no tax holiday for you! Wait, there is some more fine-print, too. If your company was incorporated post April 2016 but did not get approved by Department of Industrial Policy and Promotion as an approved ‘startup’, you won’t get the tax benefit either. If you did not apply till now, it may be the right time now. How it impacts salaries of Startup CEOs and employees So if you are a CEO of a funded digital startup here is how Budget 2017-18 impacts you. If you or your top management draw a taxable salary of over Rs 50 lakh annually, be prepared to shell out more. The Finance Minister has levied a surcharge of 10 percent of tax payable on individuals' annual taxable income between Rs 50 lakh and Rs 1 crore. If you earn more than a crore a year in net taxable income be prepared to shell out the same as last year in taxes. 

There is no relief. The existing surcharge of 15 percent of tax on people earning more than Rs 1 crore will continue. Thus, those entering the top or senior management for the first time will be the hardest hit. However, freshers in a startup would be the most happy lot. If most of your employees earn an annual package below Rs 5 lakh, they will be least sharing their earnings with the government. The existing rate of taxation for individuals earning between an income of Rs 2.5 lakh and Rs 5 lakh has been cut to 5 percent from the present rate of 10 percent.

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