What are the Types of Tax Benefits that are available for Start-ups in Electronic City if you regist
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 speci