Tax Exemptions for Startups: Income Tax Department will give these entrepreneurs the benefit of tax exemption and deduction, know who will be entitled.

Tax Exemptions for Startups: The Income Tax Department said that startups recognized by DPIIT are eligible for various tax exemptions. They are eligible for various tax exemptions and deductions under the Income Tax Act, 1961.

Tax Exemptions for Startups: There is a good news for the country’s young entrepreneurs and entrepreneurs running startups. The Income Tax Department said on Friday that startups recognized by DPIIT are eligible for various tax exemptions. The department also said that investments made in such companies will also get their benefits and are not subject to investigation. However, investments made in startups that do not meet the necessary conditions may be investigated based on the department’s risk management strategy. The Income Tax Department gave this information on the social media platform ‘X’ while responding to a tweet.

The Income Tax Department posted, “Recognized startups that meet the conditions prescribed in the notification of DPIIT (Department of Promotion of Industry and Internal Trade) on February 19, 2019 and file a declaration in Form-2 are eligible for various tax exemptions and deductions under the Income Tax Act, 1961.

” It said that investments made in such companies will also get benefits, which are not subject to investigation. The government had on February 19, 2019 relaxed the definition of startups and allowed them to avail full ‘angel’ tax exemption on investments up to Rs 25 crore.

What are startups

In the business world, “startup” means an organization that is doing business with new and innovative ideas. The main objective of a startup is to find a solution to a problem and present it in the form of a business. Many online platforms including Amazon, Flipkart, Zomato and Swiggy started as startups.

In recent years, many Indian startups have received huge business funding from abroad. Earlier, the government had also abolished the angel tax imposed on startups.

The post Tax Exemptions for Startups: Income Tax Department will give these entrepreneurs the benefit of tax exemption and deduction, know who will be entitled. first appeared on informalnewz.

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