Indian minister for commerce and Industry and civil aviation Suresh Prabhu recently cleared a proposal to simplify the process of exemptions for start-ups under the Income Tax Act. The Department for Promotion of Industry and Internal Trade (DPIIT) has issued a gazette notification regarding that. The definition of start-ups will expand with this.

Now an entity will be considered a start-up up to a period of ten years from the date of incorporation and registration instead of the earlier duration of seven years. Similarly, an entity will continue to be recognised as a start-up, if its turnover for any of the financial years since incorporation and registration has not exceeded ₹100 crore. This figure was ₹25 crore earlier, according to an official press release.

All start-ups will file a signed declaration with DPIIT for availing exemption. The declaration will be transmitted by DPIIT to the Central Board of Direct Taxes. (DS)

Fibre2Fashion News Desk – India

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