Income Tax Exemption for Startups

Dear Sir/Madam,

We have a new company as a startup & willing to take below registration for tax exemption. Please advise what are the benefits & rules applicable to avail of this benefit. Are there any disadvantages to these registrations? If yes, please share on priority.

https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.H T M L

Also, will like to know the process for applying for exemptions.

Looking forward to your reply.

Regards,

Asha

Replies (2)

For income tax exemption u/s. 80IAC, the startup has to obtain permission from 

https://www.startupindia.gov.in/content/sih/en/form80iac.htm l

after its registration... https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.htm

I think you must be aware of the basic conditions for recognition of startups by DPIIT. ( Turnover less than 100 crores, new venture only companies or  LLPs eligible, and you business should carry out an innovative idea, and model and should enhance employment opportunity and wealth creation. details available in portals)

limited to a period of 10 years only , and your authorised share capital shall not exceed 25 crores for claiming tax exemption under 80 IAC.

Online registration through portal for  initial recognition. After  which your application will be processed by Tax authorities  for tax exemption restricted to 10 years from the date of formation (Eligible only after  April 1 2016) .already 3 years lapsed for exemption.

More than 14000 startups have been recognised but very very few have got the tax exemption 

 

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