The definition of eligible startup is likely to changed under the Startup India Scheme. The central government has proposed to incorporate startups established between 1 April 2016 and 31 March 2025. This helps eligible startups to get a tax holiday.
Finance minister Nirmala Sitharaman on Thursday proposed to extend by a year the tax holiday for eligible ventures under the scheme.
Currently, the deadline for incorporation was March 31, 2024. Now, startups that will be formed in the coming fiscal year too will get the benefit under the scheme.
Till date, the Startup India scheme, the Department for Promotion of Industry and Internal Trade recognises 1,17,000 registered startups. A startup to be eligible for availing of the tax incentive, must have a turnover of less than Rs 100 crore in any of the previous financial years. A stratu can apply for exemption under Section 80-IAC of the Income Tax Act. After the approval of which it can avail of the tax holiday for three consecutive financial years out of the first ten years since its incorporation.
Categories: Op-Ed, Other News
Leave a ReplyCancel reply