tax exemption under section

Why Choose Us

We give best, Because you deserve best.

    icon images

    7 Reason Choose Kodexive

icon images

24x7 Support

icon images

Money Back Guarantee

icon images

On Time Delivery

icon images

500+ Satisfied Customer

icon images

20+ Professionals


Pay taxes to the government, it can make to pay back

What are the conditions to be satisfied to claim exemption under section 80IAC by startup?

Entity named as company or a limited liability partnership must be engaged in eligible business. Eligible business stands to business that is indulge in process of invention, innovation and development of goods and services that helps to create the employment and wealth in economy.

These entity must be formed on or after March 31, 2016 and maximum business turnover would be 25 crore annually in the previous year relevant to the assessment year for which deduction is claimed under section 80-IAC.

Entity must grasp a certificate from the inter-ministerial board of certification of eligible business.

What are the documents required for getting tax exemption registration under 80IAC?
Firstly, entity is required to register on startup india portal. After getting the registration certificate, apply for DPIIT recognition. These all services can be availed from the startup india portal that is apportioned by government for the emerging startup. Now access the application form of section 80IAC and submit it with the help of below mentioned documents that is required by the entity,

Memorandum of association for private limited or LLP deed

Board resolution

Last 3 financial year’s annual accounts of the startupp>

Last 3 year’s income tax returns that belongs to startup

If startup fulfills any of the condition then it’s eligible for 100% deduction of profit from eligible business?
If startup fulfills the condition then 100% of the profits and gains derived from eligible business are deductible for 3 consecutive assessment years. Assessee has an option to claim this deduction in any of 3 consecutive assessment years.div>
What are the benefits available to eligible startup under section 56?
When startup become eligible for getting exemption under section 56 then various other benefits he can avail like, Generally eligible startups shall be exempt for the consideration of shares received upto limit of twenty five crore rupee. Exemption as specified in section 56(2)(viib) upto specified limit. If investments into an eligible startup made by listed entities whose a net worth of more than 100 crore rupee or turnover of more than Rs 250 crore then amount of consideration beyond the Rs 25 crore limit shall be exempt. If eligible startups receive any investments from accredited investors, AIFs (Category I), non-residents and listed companies with a net worth more than 100 crores or turnover more than Rs 250 crore into eligible startups then entity is qualified for getting exemption under section 56(2)(viib) beyond the 25 crore.
What conditions make the startup eligible for the section 56 exemption?
There are various conditions that needs to be fulfill for section 56 First one need to register the entity in form of private limited company as per the Companies act 2013 and that must be DPIIT recognised. For DPIIT recognition, one can visit the startup india portal Entity must not invest the amount in specified asset class.

Along with above, it’s not allowed to make investment in any immovable property, transport vehicles above the amount of 10 lakh. They can do so in regular dealing of business..

Do You Need Our IT Solutions?
Get Advice From Our Professionals.