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Crowdfunding justifiably goes under 100 percent tax incentives for your startup
Under the Startup India initiative, recognized startups can avail themselves of an exemption of 100 percent from income tax for a maximum of three consecutive assessment years. This is a scheme run by the Government with an intention of letting founders reinvest more, scale faster, and negotiate with the investors on surety that is fully justified.
StartupKare aids in obtaining the Startup Tax Exemption Certificate easily, affordably, and entirely online.
Tax exemption under the Income Tax Act Section 80-IAC for recognized startups is made available by the government of India. The DPIIT (Department for Promotion of Industry and Internal Trade) is responsible for making such recognition.
If sanctioned, your startup will get a full 100% income tax exemption on any 3 years it chooses among the first 10 years from the date of incorporation of the startup; thus allowing it to operate as a tax-free business in India during those early stages of growth.
Purely considered as part of the Indian Startup plan for tax benefits, this could give such a great relief to young highs that now can grow without the pressure of having to pay taxes right in the beginning.
Startup India Tax Exemption Certificate Benefits
Save income tax in several lakhs during this window
More working capital retained inside the company will create job opportunities and innovation
Tax-exempt status makes tax advantages shine among most investors and VC interests
It also indicates strong cash flow and profit projections
Run your startup with this backing and approval of Indian Tax Authorities
So it is directly aligned with DPIIT benefits to avoid further scrutiny
Stack it up with Startup India Seed Funding, IPR rebates, and GeM access
Work towards creating a sustainable and tax-efficient business model through these exemptions
For a startup to be allowed to apply for tax benefits in India, it should meet the following requirements:
Criteria |
Requirements |
|
DPIIT Registration |
Already has a valid DPIIT Certificate of Recognition |
|
Company Type |
A Private Limited Company or an LLP |
|
Age of Startup |
Should have been incorporated within the last 10 years |
|
Turnover Limit |
Less than ₹100 Crores in any financial year since incorporation |
|
Innovation Requirement |
Working towards innovation or improvement or scalability of a business model |
Not Formed by Split/Merger Cannot be a spin-out or a company reconstructed out of an existing company.
Sure about your startup’s eligibility? StartupKare provides free consulting in this regard before starting the application process.
You will require the following documents for application under the Startup India tax exemption:
The specialists at StartupKare will manage the entire documentation and drafting procedure on your behalf.
Sitting back and letting us sort out the confounding myriad of red tape entailed in applying for a startup exemption from the Income Tax Department is what you deserve.
If you are:
Whether you are a SaaS startup, D2C brand, edtech, or agritech venture, with tax savings you have greater force to grow. And with StartupKare, there is no worry about how to get into the groove.
Our aim is to help entrepreneurs around the country manage their critical business and legal compliances.
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