Eligibility Criteria And Tax Exemption For Startups In India

• January 17, 2020
• CA Chandan Agarwal's Office

Article explains Eligibility For Startups In India, Tax exemptions allowable to eligible startups  which includes 3 year tax holiday in a block of seven years,  Exemption from tax on Long-term capital gains, Tax exemption on investments above the fair market value, Tax exemption to Individual/HUF on investment of long-term capital gain in equity shares of Eligible Startups u/s 54GB and Set off of carry forward losses and capital gains allowed in case of a change in Shareholding pattern.

Eligibility For Startups In India

As per the Startup India Action plan, the followings conditions must be fulfilled in order to be eligible as a Startup :

• Being incorporated or registered in India for less than 7 years and for biotechnology startups up to 10 years from its date of incorporation.
• Annual turnover not exceeding Rs 25 crores in any of the preceding financial years.
• Aims to work towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
• It is not formed by splitting up or reconstruction of a business already in existence.
• It must obtain certification from the Inter-Ministerial Board set up for such a purpose.

Read more on: https://taxguru.in/income-tax/eligibility-criteria-tax-exemption-startups-india.html