Showing posts with label START UPS. Show all posts
Showing posts with label START UPS. Show all posts

Tuesday 28 February 2017

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


Extending the period for claiming deduction by start-ups under Section 80-IAC

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.



Tuesday 5 July 2016

100% tax deduction to eligible Start ups (Section 80IAC)

100% tax deduction to eligible Start ups (Section 80IAC),
Start -ups engaged in the business of involving innovation development, deployment, or commercialization of new products, processes or services driven by technology or intellectual property, will get 100% tax deduction under specified conditions.

The profit of eligible start ups will get 100% tax deduction (under section 80IAC) for 3 years out of first five years.

Option to pay tax at lower rate for newly setup manufacturing companies (section 115BA).

Newly setup domestic companies engaged solely in the business of manufacturing or production of article or thing, has a option to tax at a lower rate of 25% instead of 30% under certain conditions.

The option to pay tax at lower rate under specified conditions is available only to domestic companies. 

For more details, view video on same.

Monday 4 July 2016

Tax exemption to start ups- now Start ups can issue shares at higher than fair market value.

As per  section 56(viib) if companies issue shares higher than the fair market value of shares ,then the same should include in taxable income of the company .

Through notification no.45/2016 –The CBDT exempt the start ups under section 56(viib).


Now the starts up can issue shares to investors at higher than the fair market value without any tax consequences.

For more details, watch the following video



Friday 1 July 2016

Start ups - Relaxation of Norms, micro & small Enterprises in Public Procurement on Prior Experience –Prior Turnover criteria.


Start ups -relax from the condition of prior turnover and prior experience with respect to Micro and 
small Enterprises in all public procurement's subject to meeting of quality and technical specification.

Clarified through Para 16 of of Public Procurement Policy for Micro and Small Enterprises Order 2012.

For more details, watch video on "Start ups -Relaxation of Norms,  MSEs on Prior Experience –Prior Turnover criteria"


Start ups – Compliance under labour law for self certification.

Start ups – Compliance under labour law for self certification

Start ups are exempt form labour law inspection during the first year of start up and required to submit self declaration.

For more details, watch a video


Start ups –Definition and procedure of recognition

What are the conditions under which an enterprise is considered as a start up?,What are the conditions required to be fulfilled by enterprise in order to take a tax benefits of start-up?,Start ups –Definition and procedure of recognition

What are the conditions under which an enterprise is considered as a start up?


What are the conditions required to be fulfilled by enterprise in order to take a tax benefits of start-up?

All the questions are discussed in details in the following video on "Start ups-Definition and procedure of recognition of start-ups".