Startup Services

Post recognition a Start-up may apply for Tax exemption under section 80 IAC of the Income Tax Act. After getting clearance for Tax exemption, the Start-up can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.

Eligibility Criteria for applying to Income Tax exemption (80IAC):

The entity should be a recognized Start-up
Only Private limited or a Limited Liability Partnership is eligible for Tax exemption under Section 80IAC.
The Start-up should have been incorporated after 1st April, 2016

Important Provision:

Some of the Important provision under Income Tax Act 1961 with respect to Start-up Business;

Section 17(2)(vi)- Taxability of ESOP
Section 54GB-Exemption on Capital Gain if Investment is made in Start-up by sale of Residential property (house or plot of land)
Section 56(2)(viib): Consideration received more than FMV at the time of issue of shares then difference amount shall not be taxable
Section 79- Carry Forward and Set Off of Losses in Case of Closely Held Company.

Our team at DVKS & Associates will assist in getting recognition as start-up, update you with start-up regarding government initiative and ensure smooth compliances of provision relating to start-up enabling you to operate your business effectively and efficiently.