Budget 2017 extend the period for start-ups to avail tax benefit.

As per the current provision under section 80-IAC, an eligible start-up shall be allowed a deduction of an amount equal to one hundred percent of the profit and gains derived from eligible business for three consecutive assessment years out of five years beginning from the year in which such eligible start-up is incorporated.

Budget 2017, proposed to provide that deduction under section 80-IAC can be claimed by an eligible start-up for any three consecutive assessment years out of seven years beginning from the year in which such eligible start-up is incorporated.

This amendment will take effect from the previous year 2017-18 and will accordingly, apply in relation to assessment year 2018-19 and subsequent years.