New Delhi, Jul 12 (IANS): As the Union Budget 2024-2025 approaches, Zerodha Co-founder and CEO Nithin Kamath on Friday shared his thoughts on how the country can create more entrepreneurs from small towns and villages by making startup investing mainstream.

According to him, part of the solution is to do everything to encourage entrepreneurs, even in small towns and villages in India.

"Venture capitalists (VCs) will never go to these areas. Which means other wealthy people are the best hope," he posted on X social media platform.

He said that one of the things the budget can address is "Section 54F". The section offers tax exemptions on the capital gains earned from the sale of any asset if the proceeds are reinvested in a residential property.

"Including investments in startups along with investments in residential property can make startup investing mainstream," Kamath suggested. Even though some people may misuse the law, the potential upside is infinitely greater and worth the minor risk, he added.

In Section 54F, as per the last Union Budget, the maximum tax exemptions are capped at up to Rs 10 crore for any long-term asset sale other than the residential property.