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Tax Exemption Certificate

Tax Exemption Certificate

Enjoy tax benefits for a continuous period of 3 years 

Unlock the potential of your startup with a 100% tax exemption on profits. Our scheme empowers eligible startups, promoting job creation, wealth generation, and long-term success.

Overview

The Central government gives eligible startups a tax deduction of 100% of their profits and gains under Section 80-IAC. 3-years of tax exemption within a ten-year timeframe. The program supported startups founded between April 1, 2016, and March 31, 2023. An extension until March 31, 2024, was introduced. Startups with an annual turnover under Rs. 100 crores received a 100% tax credit on profits for three years within a ten-year period, helping meet their initial working capital requirements. Startups have the option to select any three consecutive financial years from the first ten years after their incorporation. During those chosen years, they will receive a 100% tax credit on the profits earned specifically from their eligible business activities.

ELIGIBILITY CRITERIA

A private limited company or a limited liability partnership that has been formed after April 1, 2016, but before April 1, 2024. Engaged in innovative activities, such as product/process development or services, with a scalable business model that has high potential for job creation or wealth generation. The company should have filed ITR for at least 1 Year.

DOCUMENTATION

  • MOA for Private Limited Companies and LLP Deed for LLP Companies (PDF File Signed and stamped on each and every page)
  •  Audited Financials CA Certified (From Company ‘ s Date of Incorporation to Current Year)
  •  ITR Acknowledgment (From Company ‘ s Date of Incorporation to Current Year) 
  • Start-up Video Link (Guidance Will be Provided By Team)

We Help in

  • Pitch Deck Report
  • Consultation for the Entire Process
  • Resolution of Queries Raised By Government

FAQs

The government determines the eligibility criteria for this scheme. According to the most recent circular, companies formed between April 2016 to 1st April 2024 are eligible for tax benefits. U/S 80-IAC.
The company will not receive any type of tax rebate under this scheme. Once the government issues the Certificate of Eligibility, they will be exempt from paying taxes in future years. In order to receive the tax benefits that were approved, they must present this certificate when filing their income tax returns.
Once an application has been submitted, its approval or rejection is entirely Subject to the government. According to our understanding, the government typically reviews files within 60 to 90 working days.
The Department of Industrial Policy and Promotion (DIPP) established the InterMinisterial Board (IMB) to approve Startups for tax benefits. According to our knowledge, a monthly meeting will be held for reviewing the file, but this is entirely dependent on the government.
The Department of Industrial Policy and Promotion (DIPP) established the InterMinisterial Board (IMB) to approve Startups for tax benefits. According to our knowledge, a monthly meeting will be held for reviewing the file, but this is entirely dependent on the government.. Ans. When the business files return after receiving the certificate, there is an option under 80-IAC. When the company enters the Certificate Number, they will receive the tax exemption.
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