ᱟᱭᱠᱚᱨ ᱴᱮᱠᱥ ᱨᱮ ᱪᱷᱩᱴ ᱨᱮᱭᱟᱜ ᱤᱥᱛᱤᱦᱟᱨ ᱠᱚ
The Inter-Ministerial Board setup by the Department of Industrial Policy and Promotion validates Startups for granting tax-related benefits. The Board consists of the following members:
- ᱠᱚᱞ ᱠᱟᱹᱢᱤ ᱟᱨ ᱵᱷᱤᱛᱤᱨ ᱵᱮᱯᱟᱨ ᱠᱚ ᱦᱟᱲᱦᱟᱣ ᱮᱢ ᱞᱟᱹᱜᱤᱫ ᱠᱷᱚᱸᱡᱟ ᱥᱩᱛᱨᱮᱫ, ᱥᱸᱭᱚᱡᱟᱠ
- Representative of the Department of Biotechnology, Member
- Representative of the Department of Science & Technology, Member
The board shall validate startups for the Income Tax Exemption on profits under Section 80-IAC of the Income Tax Act:
A DIPP-recognised startup shall be eligible to apply to the Inter-Ministerial Board for a full deduction on the profits and gains from the business. Provided the following conditions are fulfilled:
- ᱥᱴᱟᱨᱴ ᱟᱯ ᱱᱟᱣᱟ ᱛᱮᱭᱟᱨ ᱚᱰᱚᱠ, ᱩᱛᱷᱱᱟᱣ ᱟᱨ ᱵᱟᱝ ᱟᱨᱡᱟᱣ ᱛᱩᱫ ᱟᱨ ᱵᱟᱝ ᱠᱟᱹᱢᱤ ᱠᱚ ᱟᱨ ᱵᱟᱝ ᱥᱮᱣᱟ ᱠᱚ ᱨᱮᱭᱟᱜ ᱥᱩᱫᱷᱟᱨ ᱟᱨ ᱵᱟᱝ ᱨᱚᱡᱜᱟᱨ ᱢᱚᱰᱟᱞ ᱟᱨ ᱵᱟᱝ ᱛᱮᱭᱟᱨ ᱥᱤᱨᱡᱚᱱ ᱨᱮᱭᱟᱜ ᱢᱤᱫ ᱪᱮᱛᱟᱱ ᱠᱷᱮᱢᱚᱛᱟ ᱥᱟᱸᱣ ᱢᱤᱫ ᱥᱠᱮᱞᱮᱵᱟᱞ ᱣᱤᱡᱱᱮᱥ ᱢᱚᱰᱟᱞ ᱨᱮ ᱞᱟᱜᱟᱣ ᱟᱠᱟᱱᱟ,
- Incorporated on or after 1st April 2016 but before 31st March 2023, and
The startup is engaged in the innovation, development, or improvement of products, processes, or services or a scalable business model with a high potential for employment generation or wealth creation.
To apply for Income Tax Exemption on investments above the fair market value received under Section 56 of the Income Tax Act:
A Startup shall be eligible for notification under clause (ii) of the proviso to clause (vii)(b) of sub-section (2) of section 56 of the Act and consequent exemption from the provisions of that clause if it fulfils the following conditions:
- ᱱᱚᱣᱟ ᱰᱤ. ᱯᱤ. ᱟᱤ. ᱟᱤ. ᱴᱤ. ᱯᱮᱨᱟ 2(iii)(a) ᱟᱨ ᱵᱟᱝ ᱱᱚᱣᱟ ᱵᱤᱥᱮᱭ ᱨᱮ ᱢᱟᱨᱟᱝ ᱛᱮᱭᱟᱜ ᱟᱫᱷᱤᱥᱩᱪᱱᱟ ᱞᱮᱠᱟᱛᱮ ᱵᱟᱛᱟᱣ ᱮᱢ ᱟᱠᱟᱫ ᱟ.
- Aggregate amount of paid-up share capital and share premium of the startup after the issue or proposed issue of a share, if any, does not exceed twenty-five crore rupees.
For more details, refer to the Notification.
