The Department of Industry and Internal Trade Promotion (DPIIT) recognized startups are eligible for various tax exemption. At the same time, investment made in such startups is eligible for benefits. They are not subject to Janta. The Income Tax Department made this clear on Friday. According to PTI news, however, the department also said that investment in companies that do not meet the necessary conditions can be investigated on the basis of the risk management strategy adopted by the department.
Information given in a post on X
According to the news, the Income Tax Department responded to an X post and said in a post on the X-the assignment that fulfills the conditions set in the notification of DPIIT (Industry and Internal Trade Produce Department) on February 19, 2019 and file an announcement in Form-2, they are eligible for various tax exemptions and deductions under the Income Tax Act, 1961. Investments made in such companies are eligible for benefits and are not subject to investigation.
The definition of startup also relaxed
On February 19, 2019, the government relaxed the definition of startups and allowed them to avail full angel tax concession on investment up to Rs 25 crore. To provide this tax exemption, the department also relaxed the definition of startups.
As of 31 January 1,61,150 units recognized startup
The government has recognized 1,61,150 units as a startup till 31 January this year. Of these, 28,511 units have been recognized as a startup in Maharashtra and 16,954 units in Karnataka. Recognized units are eligible for tax incentives under the Startup India Action Plan. Support is provided to recognized startups under the Startup India initiative. According to a report, in the last year India’s agricultural food technology (Agrifoodtech) startup has tripled to $ 2.5 billion.
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