Planning To Get Into Startups! Read This To Know More
The government has eased norms for getting income tax benefits available under the Startup India programme.
Department of Industrial Policy and Promotion (DIPP), under the Indian government’s Ministry of Commerce and Industry, in a notification dated 23 May 2017, has issued new guidelines on the startup scenario. These new recommendations are in supersession of the notification earlier issued by DIPP on 17 February 2016.
The government has differentiated startups belonging to biotechnology sector with others. Now, an entity will be considered a startup up to seven years from the date of its incorporation/ registration; in case biotechnology sector, the period shall be up to ten years. Earlier the period was limited to five years.
The turnover for any startup and for any financial years should not exceed Rs 25 crore, this policy remains unchanged.
The government has also modified a few steps in the process of recognition as a startup. Now, “Entities will be required to submit the online application (made over the mobile app/ portal set up by DIPP) along with the Certificate of Incorporation/ Registration and other relevant details as may be sought. Startups also have to submit a write-up about the nature of business highlighting how is it working towards innovation, development or improvement of products or processes or services, or its scalability in terms of employment generation or wealth creation.”
The government has also eased norms for getting income tax benefits available under the Startup India programme.
Startups, therefore, will no longer be required to submit letter of recommendation from an incubator or industry association to be eligible for the tax benefits and recognition under Startup India.
Startup India is a programme launched by the government of India on 16 January 2016 to boost entrepreneurship and financial assistance for the startups in the country.
As of 15 May, 2017, DIPP has recognised 932 startups, according to the official site of Startup India.
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