 |
| Startup Law |
A broad variety of taxes, such as central tax, state tax and even local taxes, may be applicable to certain businesses. Different business and operating sectors attract different taxes; knowing this beforehand can be useful.
A startup can avail of income tax exemption for 3 years as well as tax exemptions from capital gains and investments above Fair Market Value. The Government of India launched the 'Startup India' initiative to promote startups and introduced many exemptions and tax holidays for startups.
The conditions that startups need to qualify to leverage these exemptions are:
• The startup should not be more than 7 years old (or 10 years for biotech) from the date of incorporation.
• Is incorporated as a Registered Partnership, Limited Liability Company or Private Limited Company.
• Turnover in any year should not have exceeded 25 crores.
• The startup should not have been formed by splitting or reconstructing an existing business.
No comments:
Post a Comment