<h1>New Budget Boosts Startups: Tax Breaks, Patent Incentives, and Capital Gains Adjustments in 2016-17.</h1> The Union Finance Minister announced measures in the 2016-17 budget to stimulate growth and employment. Startups established between April 2016 and March 2019 can benefit from a 100% profit deduction for three out of five years, though MAT applies. Investments in regulated funds or majority-held startups are exempt from capital gains tax. A 10% tax rate is proposed for income from patents developed in India. Asset Reconstruction Companies will have income taxed at the investor level. The long-term capital gains period for unlisted companies is reduced to two years. Additional tax exemptions and deductions were proposed for various sectors and initiatives.