Finance Minister Proposes To Extend Date Of Incorporation For Eligible Start-Ups For Exemption
In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman proposed to extend the date of incorporation for eligible start-ups for exemption.The existing provisions of the section 80-IAC 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,...
In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman proposed to extend the date of incorporation for eligible start-ups for exemption.
The existing provisions of the section 80-IAC 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 three conditions.
Firstly, the total turnover of its business does not exceed 100 crore rupees.
Secondly, it is holding a certificate of eligible business from the Inter-Ministerial Board of Certification.
Lastly, it is incorporated on or after 1st April, 2016 but before 1st April 2023.
In order to further promote the development of start-ups in India and to provide them with a competitive platform, it is 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 1st April 2024.
The 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.
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