Startup India Tax Exemption
Tax Exemption
It's always a good idea to start a new business. The Indian government offers many benefits for startups to succeed. From the big idea of this program, there are various Tax Exemption benefits, which make a big difference in the first years of company incorporation.
What is Startup India Tax Exemption?
How It Benefits Startups
The Startup India Tax Exemption initiative by the government is working for entrepreneurship and innovation. It is the most beneficial opportunity. It provides eligible startups with tax exemption on their profits for three consecutive years within their first ten years of incorporation.
That means you can keep more of your earnings and put them back into your business growth.
This initiative forms the core of Startup India, which is aimed at creating an energetic startup system in India. It is designed to promote innovation, job creation, and economic growth.
The tax exemption for startups provides several key advantages:
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Financial Security: Low tax liabilities bring about more financial security, letting the startups commit more resources for growth and expansion.
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Greater Attractiveness to Investors: Tax Exemption will attract investors for startups, to afford the required funding.
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Idea-focused start-up: Less taxes give enough resources of investing in the process of Research and Development. which results in innovative products or services being manufactured.
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Ease to Operate Business: Ease on taxes would ensure that there are available funds that are meant for expenditure relating to the operating of business. Thus, advertisements and recruitment or establishing infrastructure can take place.
Eligibility of business to qualifies
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Recognition : Recognized under Startup India by DPIIT.
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Corporate Structure: Either a Private Limited Company or a Partnership Firm or a Limited Liability Partnership
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Turnover: Total turnover in any of the past three years not exceeding ₹ 100 crores.
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New Entity: Not formed by the splitting-up or reconstruction of an existing business.
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Important Note: LLP registration can help enjoy extra tax benefits and is therefore quite beneficial for startups undertaking Research & Development.
StartupFlora : Your Growth Partner
Benefits Accessing
A new startup will have to apply for exemption online at the DPIIT portal. Once DPIIT verifies the application, it will issue a tax exemption certificate.