Monday, April 4, 2016

Startup Registration is Not Enough for Claim of Tax Benefits ! Here is What You Need to Do .

Now that government has made the website for registration of startup live is good news for all , this post is just to remind them that while registering with the government through website or mobile app ( not yet launched ) is good for their recognition as startup and many benefits under the startup India program, that is not enough for claiming exclusive tax benefits to startups -100% profit exemption,capital gains exemption u/s 54EE and section 54GB - brought in by Finance Bill 2016 

The need for  additional recognition is provided in the notification  dated the 17"'February, 2016 by DIPP  as under

Provided further that in order to obtain tax benefits a sta(up so identified under the above definition shall be required to obtain a certificate of an eligible business from the lnter-Ministerial Board of Certification consisting of: 
a) Joint Secretary, Department of Industrial Policy and Promotion, 
b) Representative of Department of Science and Technology, and 
o) Representative of Deparlment of Biotechnology.

What Needs to be Done for Tax Benefits ?

For this , when you are registering the startup , answer Yes when the question  “Do you want to avail Tax and IPR benefits”  , state yes. If you do that , your  application would be evaluated by the Inter-Ministerial Board.

Once certified by the Board, the benefits may be availed.

Please also note that if for any reason , you answered teh question above No , you can later apply for the certificate from nter-Ministerial Board of Certification 

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