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Startup company

kavitha (internal auditor) (27 Points)

07 June 2025

A private limited company has been incorporated newly to manufacture specialised garments mostly for export. It will provide employment opportunity for about 250 female workers. Whether we can claim tax incentives under startup India programme. The manufacturing activity will be in a rented building with a new machineries purchased by the unit. kindly explain about the tax rate and exemption details

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2 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14891 Points)
Replied 07 June 2025

1) You Can refer section 80 IAC of the income tax act 1961 in detail , for Income tax exemption under certain Conditions for Start ups . You have check all condtions and eligibility .

Also refer section 54EE capital Gain tax exemption , if invested in Govt fund

2) Under GST Act , export is Zero ,rated supply, you either pay GST and Claim refund, or Export with LUT ( Letter of Undertaking) without payment of GST .

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prasad Nilugal ( GST Practitioner & Accounts ) (14891 Points)
Replied 07 June 2025

If your PVT ltd company is eligible and fulfill all conditions under 80IAC of the income tax act , then you have to registered your PVT Ltd co on DPIIT Start up India portal , after registartion , apply for DPIIT ( Department for industrial policy & pramotion ) recognition , then access the 80IAC exemption form here , fill up the form and upload requried documents .