Only 16 of the 728 applications received under the Start-up India initiative have been found eligible for tax benefits, according to the government.
“Till date (July 18), 728 applications have been received. Of them, 180 are complete and the applicants are recognised as start-ups,” a statement from the Department of Industrial Policy and Promotion (DIPP – the nodal government body on start-ups) said.
“Only 16 applicants are incorporated after April 1, 2016 and are eligible for tax benefits. Out of these, 3 applications have been considered in the second meeting of Inter-Ministerial Board (one has been recommended for tax benefits and other two have been disallowed).”
Those applicants recognised by the government as start-ups and incorporated “between April 1, 2016 and March 31, 2019 get income tax exemption for three years in a block of five years,” according to the DIPP.
To avail these benefits one must get a Certificate of Eligibility from the Inter-Ministerial Board, it said, adding that tax exemption on investments above Fair Market Value have been introduced on June 14 for investments made in start-ups.
‘Start-up India Hub’ has been set up to resolve queries and provide hand holding support to start-ups.
Those seeking clarifications pertaining to certificate of recognition as a “start-up”, certificate of eligibility to avail tax benefits, information on incubators or funding, could to get in touch with the hub, according to the DIPP statement.
