India is developing and has just become the third leading startup supportive economy. It is creating step by step and will soon become the most exposed tech startup center on the planet. To support and sustain new businesses in india, the administration has declared a few projects through which they can profit benefits, one of them being the startup india program. The fundamental point of this activity is to make a situation that helps new businesses in the nation and pushes for the advancement of business people. Here’s a glance at the tax benefits these new companies can make and how they can utilize these projects to fuel their development.
DPIIT stands for Department for Promotion of Industry and Internal Trade
DPIIT setup the inter-ministerial board whose work is to validate the startup for allowing tax related benefits. The board shall validate them for tax exemption on profits as per the section 80-IAC of income tax act. A DPIIT authority provides recognition to startup that makes them eligible to apply to the inter-ministerial board for complete tax deduction on the profits and gains rises from business. Start-up must be engaged in innovation, creation or improvement of products or services or accessible business model with a great potential of employment generation or wealth formati
The entity must be newly incorporated after 01 April 2016, in the form of private limited company or a limited liability partnership. Any entity which is shaped from the practice of reconstruction then it’s not allowed here to get benefit. Turnover of the entity must not exceed 25 crore annually in the preceding year related to the assessment year for which deduction is claimed under section 80-IAC. Entity must be recognised with DPIIT.