The Prime Minister of India, Shri Narendra Modi announced some visionary goals to enhance the Startup ecosystem in the country. Promoting the Startup ideology, the PM brought up the Startup India initiative. The initiative is proposed to fulfil the needs of struggling entrepreneurs and encourage them to work in a more feasible manner. Notedly, the Budget 2016 also had a different section for the tax benefits and exemptions for new startups. The Government aims to boost the economy with the help of technology and consumer-oriented startups.
The Government has also issued an action plan that lists around 19 points that could help the startups grow at a faster rate. The action points comply with the easy launch of mobile app and website, self-certification, startup India community, low-cost patent examination, proper funding support, fast exits, etc. The Startup India action plan term “Startup” as an individual entity which has to be registered with the Government of India (not prior to 5 years) and the annual turnover should not exceed 100 crores in any financial year. It shall be working in the field of development and making products for the welfare of society with the help of innovation and technology.
Following Tax exemptions for the startups have been introduced that will be effective from 2017-18. The proposed incentives and exemptions are:
There are certain eligibility conditions for the Indian startups that will ensure their best collaboration with the Government of India. To be considered as eligible, the startup should be:
Recommended: GST Benefits for Startups in India
The Union Budget 2016 highlighted some major tax exemptions for startups in India. The exemptions come under the Startup India campaign. Take a glance at the budget 2016 highlights that focus on boosting the startup ecosystem in the country.
With such tax exemptions for Startup India, the Government aims to produce a better environment for new businesses and entrepreneurship. The tax relaxation for three years has brought up certain enthusiasm and the Indian entrepreneurs need not worry about the downfall and should feel free to take the risk in the market. The Government will provide all kinds of support and aid to the Startups that lie under the above-mentioned eligibility criteria.
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I have a query on submission of Startup declaration form -2. Can we file backdated form for approval. It is incorporated on and after 01st April 2016.
Due to online submission current date is reflected on submission of form.
I am a woman entrepreneur and my online business which was registered last year under GST. Is there any income tax exemption for me when I file my income tax.
Hello, I have a copyright for business process and project from GOI. I have been investing my time, energy and fund for gathering support for the project from GOI, states and related authorities for this I have to spend funds for travel, website, meetings, communication etc. So far I have not registered a company as I am not sure if Government will support the en-devour on its merits. The project is socio-economic benefit project and needs GOI intervention and approvals for implementation. I am unemployed for a year and I have to fund the support from my Fix Deposits earnings which is my lifeline.
Do I get any exemptions on filing my personal income tax returns?
For an eligible startup business, 100% exemption income derived will be provided for 3 consecutive years under section 80IAC.
We have just started a restaurant business and we have taken FSSAI certificate, will we eligible for startup exemption?