Exciting to start a business, getting into the tax world scares you? However the good news is, the Indian government has come up with some amazing tax exemptions for this purpose to ensure your startup grow well. That is called Startup India Tax Exemption, which would be easy for the initial years in running the business.
Alright, so at StartupFlora, we love empowering startups. So let's break it down for you on how you can unlock tax exemption to fuel business growth.
What is the Startup India Tax Exemption?
The Start-up India Tax Exemption program is looking ahead to push Indian innovation and entrepreneurship. It will offer a good opportunity to eligible startups, the tax exemption on their profits for three consecutive years from the first ten years of operation of business. It gives money to reinvest into your business. It works as a core program of the Startup India initiative. It focuses on creating an ecosystem that promotes innovation, creates jobs, and contributes to the country's economy.
Why it is helpful for Startups?
Government tax exemption comes with many benefits:
Financial Freedom:
Less tax burden, greater financial stability to invest more in growth and expansion.
Attract Investors:
Most investors will fund more businesses with sound financials. Tax exemptions make your startup look more attractive for funding.
Focus on What Matters:
With less financial stress, you'll be in a good position to focus on making incredible products and services, solving the problems of other people, and delighting your customers.
Operational Efficiency:
More money that can be used for the operations such as marketing, getting the right people on board, and putting in place infrastructure because of low tax.
Who Can Avail?
The enterprise needs to fulfill the following conditions to take benefit of the Start-up Tax exemption:-
Recognised: Under the Start-up India initiative, registered by DPIIT.
Structure: an incorporated under Private Limited Company or a Partnership Firm or even under Limited Liability Partnership.
Turnover: an annual turnover exceeding Rs 100 Crore in any of the immediately preceding three Financial Years.
New Entity: No new entity is one that shall not have been an incorporated or formed by splitting, or reconstructing any existing undertaking.
Beneficially on tax considerations, hence extremely attractive to research and development-oriented start-ups, registration as an LLP.
How to Get Tax Exemption for Your Startup in India?
Ready to unlock these amazing tax benefits? Here's a quick guide:
Get Registered :
Ensure that your startup is registered under the Startup India initiative.
Meets Eligibility Criteria:
Ensure that your form of business and activities meet the eligibility criteria.
Online Application:
You can submit your application at the Startup India website.
Issuance of Certificate:
On successful consideration, a tax exemption certificate will be issued to you.
How StartupFlora is a Helping hand ?
Tax exemption and government rules seem pretty confusing. At StartupFlora, we try to simplify all those processes and make expert advice to the matter at hand. We will clarify the tax advantages for Indian Startups and assist the application procedure too.
Be interested in learning more about what exclusions by the 'Startup India' initiative will add to your new business venture? Write to StartupFlora & we are ardent towards reaching out and catering to startups about their capabilities in full strength.
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