Eligible enterprises can be recognised as Startups by Dpiit startup registration under the Startup India initiative, gaining access to a variety of tax incentives, simplified compliance, IPR fast-tracking, and more. Read on to learn more about eligibility and perks.
The Government of India's flagship programme, the Startup India Scheme, was introduced in 2016. Via this effort, the government hopes to empower startups to develop through innovation and design. Startup India's mission is to produce and innovate goods and services while also boosting jobs in India. Eligible enterprises can be classified as Startups by the Department for Promotion of Industry and Internal Trade (Dpiit startup registration) to have access to a variety of tax perks, simpler compliance, IPR fast-tracking, and other benefits under the Startup India initiative. The Department for Promotion of Industry and Internal Trade (Dpiit startup registration) is in charge of coordinating the Startup India initiative's execution with other government agencies. The Small Industries Development Bank of India (Sidbi) is the operational agency for the Fund of Funds for Startups, while DPIIT is the monitoring agency (FFS).
Benefits of Dpiit startup registration
The advantages constitute a compelling narrative for the government's support of the entrepreneurial environment, which will enable jobs and innovations. Only 4% of startup applicants received tax benefits in the first 30 months of the Startup India initiative in January 2019.
Section 56(2)(vii)(b) of the Income Tax Act of 1961 provides an exception.
The imposition of tax on this extra consideration is an exemption accessible to a registered startup. This exemption is especially useful during the stage of an angel/venture capital round, when the angel or VC invests in excess of the fair market value.
Section 80-IAC tax exemption
For the first ten years after its formation, a registered startup can get an exemption from paying income tax for three years in a row.
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