Bengaluru, Jan. 28 -- Startup survival in Karnataka is increasingly under strain due to complex taxation and compliance norms, particularly those related to Tax Deducted at Source (TDS), industry leaders said. They noted that many founders are being forced to exhaust personal savings, with little or no safety net if their ventures fail.
BCIC Chairman (International Business Expert Committee) K Ravi said early-stage startups face severe financial pressure as compliance costs rise even before revenues stabilise.
He said the complicated tax structure and frequent TDS obligations drain cash flow and distract entrepreneurs from building their businesses.
Ravi said he expects the union Budget to focus on simplifying TDS norms, easing complianc...