Are you curious to know if your Startup is eligible for availing Tax Benefits under Income Tax Act? To answer this, one must understand:
- What is “Eligible Business”
- What is “Eligible Startup”
- Tax Benefits u/s 80-IAC
Eligible Business:
- Is a business which involves innovation, development, deployment or commercialization of new product, processes or services driven by technology or intellectual property.
Eligible Startup:
- Is a Company or a Limited Liability Partnership engaged in doing “Eligible Business”
- Incorporated on or after the 1st Day of April, 2016 but before the 1st Day of April, 2019
- Having total turnover not exceeding 100 Crores in any of the prior years
- Holds a certificate of eligible business from the Inter-Ministerial Board of Certification and
- Should not be formed by splitting up or Reconstruction of a business already in existence
Tax Benefits u/s 80-IAC:
- If your Startup fulfills the above criteria, then your Startup is eligible for 100% tax deduction u/s 80-IAC.
- This 100% deduction on Tax can be claimed for 3 consecutive assessment years from any of the first 10 years at your discretion.
SimplyFACT is a product of SimplyBiz where we provide Entity Management Services covering Accounting, Compliance, Taxation, and Payroll. We not only help you with the start-up registration but also with availing Tax benefits. In case you want to know more on the scope of work, please write to our Product Head – M Pavan Kumar at pavan@simplybiz.in or Simplyfact@simplyBiz.in.
Disclaimer
The content of this document has been developed based on relevant information and are purely for private circulation. Though the authors have made utmost efforts to provide authentic information, however, the authors expressly disclaim all and any liability to any person who has read this document, or otherwise, in respect of anything, and consequences of anything done or omitted to be done by any such person in reliance upon the contents of this document.
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