Eligibility Start-ups can register to make use of 2 benefits under income Tax
U/s 80IAC: - According to the Start-up company registration in electronic city Exempted tax on 100% gain and profit from business for 3 successive financial year.
U/s 56(2) (viib) (Angel Tax): - Exempted tax on investment in shareholder capital if there is any excess share premium value on the top of the fair market value.
Who can Apply for Tax Benefit?
a Start-up company must be authorized or recognized by DPIIT (previously known as DIPP)
It should contain only a Limited Liability Partnership (LLP) or a Private Limited Company
The Start-up company should be in incorporation on or after 1st day of April 2016.
Your start-up entity should be recognised as Start-up by DPIIT department.
Is this adequate to avail the benefits of tax exemption?
No. it is not of you wanted to avail the benefits of tax exemption; you need to register separately through DPIIT.
What are high possibilities to get Tax Exemption certificate?
Based on the acquired information, making enquiries and documents by department, as it may help them tom decide whether you start-up company is suitable or not,
The DPIIT department will EITHER, approve your application and will consider of issuing certificate with tax exemption benefits
OR, Reject with the appropriate reason for the rejection.
How to Register for Tax Exemption Certificate U/s 80-IAC according to the Income Tax Act
According Start-up Business Consultants in Electronic city the Amendment Rule they will observe the Notification that is dated 11th April '2018 issued by Ministry of Commerce and Industry (Department for Promotion of Industries and Internal Trade) -
A Start-up existed as a Limited Liability Partnership (LLP) or a Private Limited Company that is in incorporation after 1st April 2016 they are eligible for acquiring a certificate for the purpose of section 80-IAC of the Income Tax Act, they will make an application in Form-I along with documents specified inside to the Board and the Board may after going through such information or documents and making such enquires, they may decide as the company is suitable.
- i) Issue Tax Exemption Certificate.
- ii) Reject the application by providing reasons.
When to apply?
In Start-up Registration services provider in electronic city After getting your authorization and recognition as a Start-up you may apply for Tax exemption under section 80 IAC of the Income Tax Act. After getting clearance or NOC for Tax exemption, the Start-up can avail the benefits of tax holiday for 3 successive financial years out of its first ten years since incorporation of Start-up firm.
How to Apply?
You will need to Login at Start-up India Portal, then go to your dashboard and select the 'Recognition and Tax Exemption'. Once you lick and you will enter on this page, there is an option to Apply
What are the several documents to attach online?
Memorandum of Association for Partnership Deed or Private Limited Company for LLP
Board Resolution (Optional)
Previous 3 years Audited Balance Sheet and Loss and Profit Records and statements. If 3 Years not available, then at least attach the latest year's copy.
Previous 3 Years Income Tax File Return. If 3 Years is not available, then at least attach the latest year's copy.
Department may also ask for further requirement of information and documents for their gratification to grant exemption.
How to Apply for Start-up COMPANY REGISTRATION in Electronic City?
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