Income Tax Exemption: Startup: Extension of date of incorporation for eligible start-up for exemption

 Extension of date of incorporation for an eligible start-up for exemption [Section 80-IAC] 

The existing provisions of the section 80-IAC of the Act, inter alia, provides for a deduction of an amount equal to 100% of the profits and gains derived from an eligible business by an eligible start-up for three consecutive assessment years out of ten years, beginning from the year of incorporation, at the option of the assessees subject to the condition that, 

(i) the total turnover of its business does not exceed one hundred crore rupees, 

(ii) it is holding a certificate of eligible business from the Inter-Ministerial Board of Certification, and 

(iii) it is incorporated on or after 1-4-2016 but before 1-4-2023. 


In order to further promote the development of start-ups in India and to provide them with a competitive platform, the Finance Bill, 2023 has proposed to amend the provisions of section 80-IAC of the Act so as to extend the period of incorporation of eligible start-ups to 1-4-2024. 

This amendment will take effect from the 1st day of April, 2023 and shall accordingly, apply in relation to the assessment year 2023-24 and subsequent assessment years. 

Comments

Post a Comment

Popular posts from this blog

"Turning Failures into Success: How Resilient Companies Pivot and Thrive"

Image
"Turning Failures into Success: How Resilient Companies Pivot and Thrive" Many successful companies have encountered failures along their journey, but their ability to learn from mistakes and adapt has often been a key factor in their ultimate success. Failures can provide valuable insights, prompting companies to rethink strategies, innovate, and explore new opportunities. This resilience and willingness to pivot not only helps companies survive challenging times but can also lead to breakthroughs that drive long-term success. It's a great reminder that setbacks are often stepping stones to greater achievements. It's a reminder that resilience, creativity, and a willingness to pivot are crucial elements of long-term success. These companies demonstrate that even failures can lead to later successes with perseverance and innovation! Here are some examples of foreign companies that initially launched a product that failed but later succeeded: 1. *Samsung (South Korea)*...
Read more

Discard ITR: The income tax department has introduced a new functionality on its portal.

Image
Discard Return FAQs Question 1: I filed my Original ITR u/s 139(1) on 30th July 2023 but not yet verified. Can I Discard it? Response: Yes, user can avail the option of “Discard” for the ITRs being filed u/s 139(1) /139(4) / 139(5) if they do not want to verify it. User is provided a facility to file an ITR afresh after discarding the previous unverified ITR. However, if the “ITR filed u/s 139(1)” is Discarded and the subsequent return is filed after the due date u/s 139(1), it would attract implications of belated return like 234F etc., Thus, it is advised to check whether the due date for filing the return u/s 139(1) is available or not before discarding any previously filed return. Question 2: I Discard my ITR by-mistake. Is it possible to reverse it? Response: No, if ITR is Discarded once, it can’t be reversed. Please be vigilant while availing Discarding option. If an ITR is Discarded, it means that, such ITR is not filed at all. Question 3: Where can I find “Discard option” ? Res...
Read more

GST Amnesty Scheme for interest and penalty raised under section 73

Image
Amnesty Scheme by way of waiver of interest and penalty for demands raised under Section 73 The proposal of the GST Council is to insert Section 128A to provide a waiver of interest and penalties for demand orders issued under Section 73of the Central Goods and Services Tax Act, 2017 ('CGST Act'). This waiver applies to cases where taxpayers pay full tax demand by 31-03-2025. This is recommended for the financial years 2017-18, 2018-19, and 2019-20.  However, the waiver is not to be extended in the cases of erroneous refunds. This recommendation provides significant relief to taxpayers where the tax remained unpaid in non-fraud, genuine cases of non-payment or short payment, etc. Since the inception of GST, many show-cause notices and demand orders have been issued for the starting years. The accumulated amount of interest for such initial years has grown equivalent to the tax amount or even more due to the extension of the time limit for issuing orders under Section 73 for FYs...
Read more