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
- Is a business which involves innovation, development, deployment or commercialization of new product, processes or services driven by technology or intellectual property.
- 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 firstname.lastname@example.org or Simplyfact@simplyBiz.in.
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