Startup India

Startup India

Startup India:-

       The existing provisions of section 80-IAC of the Act provide for  a deduction of an amount equal to 100% of the profits and gains derived from an eligible business by an eligible start-up for 3 consecutive assessment years out of 7 years, at the option of the assessee, subject to the condition that the eligible start-up is incorporated on or after  1st April, 2016 but before 1st April, 2021 and  the total turnover of its business does not exceed Rs.25 Crores.

Amendment:- 

       In order to further rationalise the provisions relating to start-ups, it is proposed to amend section 80-IAC of the Act so as to provide that-  

(i)  the deduction under the said section 80-IAC shall be available to an eligible start-up for a period of 3 consecutive assessment years out of 10 years beginning from the year in which it is incorporated;  

(ii)  the deduction under the said section shall be available to an eligible start-up, if the total turnover of its business does not exceed Rs.100 Crores in any of the previous years beginning from the year in which it is incorporated.

        This amendment will take effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year  2021-22 and subsequent assessment years.

Startup India Startup India Reviewed by CA Aditya Rane on February 08, 2020 Rating: 5

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