Startups Could Make It Through 2nd Round for Tax Benefits

  • Setindiabiz Team
  • August 1, 2023
startups could make It through 2nd round for tax benefits
NEW DELHI: Kanpur-based Bhurak Technologies Pvt Ltd. was the only one out of 571 startups that could make it through the second round of the inter-ministerial board meeting under the Startup India initiative. The Bhurak Technologies Pvt Ltd. had applied to the Department of Industrial Policy and Promotion(DIPP) for availing three-year tax benefits announced in the Startup India Action Plan.
The Statistics: According to a status report issued by Ministry of Commerce and Industry only 106 applicants were able to furnish the required documents while only 12 out of them could meet the condition of being incorporated after 1st April, 2016 and were found eligible for availing the tax benefits. Further, out of 12 shortlisted startups only seven applicants could furnish all of the required documents. “Rest of the applicants will be provided guidance and support to submit the relevant documents by the Startup India Hub,” the status report said.
Earlier: The first round was held in May where 200 applicants applied for availing the tax benefits. Out of 200 applications that were received by DIPP only 30 were shortlisted. The scenario was same even then where only one company — Hyderabad-based Cygnis Energy —could manage to get the benefits for filing patents.
However, in order to access legal help in filing patents it is no longer required to acquire the stamp of approval from the inter-ministerial board. “The step was taken as a part of an overhaul for the programme last month.”
As per the current plan DIPP is pushing for providing tax benefits to startups for 7 years instead of 3 years and the same is being considered by the finance ministry. “The government’s Startup Action Plan of January 2016 had stated that with limited avenues of finance available to startups and the cash constraints, a tax holiday in the initial years can be helpful.” Earlier, the government had provided similar tax benefits to the software and information technology industry.
In view of this the DIPP has also organized a national startup fest in September. The fest will be a match-making exercise between investors and startups.

Leave a Reply

Your email address will not be published. Required fields are marked *

Talk To An Expert

*Your Information is safe with us | Privacy Policy

  • SETINDIABIZ
  • PARTNER PROGRAM
BECOME OUR PARTNER
Exclusive Offer For CA, CS, CMA, Advocate & Tax Practitioners

Apply for Professional Tax Registration

The Professional Tax is mandatory for every company, LLP, GST-registered business, and other applicable professionals. Registration must be obtained within 30 days of incorporation or registration date. Comply now to Avoid Penalty.

Professional Tax Applicable States

Free consultation and calculator of dues, interest & penalty, if any.

Shops & Establishment Act Registration

(Mandatory to all commercial establishments in every state)
All new establishments must register with the office of the Labour Commissioner (Under the applicable state Shops & Establishment Act) within 30 days of their incorporation for companies or LLPs or the start of business for proprietorships or other businesses.
Free consultation and help to calculate dues, interest & penalty, if any.

Protect Your Trademark Now!

(We help you file trademarks in India and abroad)
Don’t let copycats steal your Trademark or Brand. Register your trademarks now in India to protect your brand, logo, slogan, etc. We have helped over 15K Brands secure their IP.

You Can Protect the Following

Free consultation and Trademark Search in Governemt Database