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.