has become the biggest driving force behind entrepreneurship development in India. It fosters an inspiration inducing innovation ambience further supporting a nurturing ecosystem for the sustenance of start-ups. Among the several facilities available to eligible start-ups, tax exemptions are at the top of the list of benefits that might leave almost negligible marks on the financial well-being of the start-up.
Most startups are financially constrained in the first couple of years. Tax exemptions will amount to some form of relief they get for reinvesting their earnings in such key areas as R&D, marketing, and talent acquisition that would give way to faster growth and lead to increased chances of success.
One of the integrated initiatives that nurture the startup ecosystem is the startup India scheme. The benefits include:
Some of the key tax benefits offered to eligible start-ups are as follows:-
Eligibility conditions for availing tax exemption through the Startup India are:
The online claims process is not complicated for tax exemption. All the required documentation and eligibility criteria need to be provided through the portal of Startup India for filing.
As per the mandates, a DPIIT registration and a startup registration qualify to obtain the tax exemptions. Income tax holiday, angel tax exemption, and capital gains exemption fall under the tax exemption under the Startup India scheme. One can apply for tax exemption online through the portal of Startup India.
Understanding the available tax benefits under the Startup India scheme and fulfilling eligibility criteria will not only decrease the tax burden on startups but also fuel them for their growth trajectory.
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