SME Times News Bureau | 12 Apr, 2018
The 'Startup India' initiative has helped the government to
generate large-scale employment, said the Commerce ministry on
Thursday.
"Government
of India launched the âStartup Indiaâ initiative on January 16,
2016 to build a strong eco-system for nurturing innovation and
entrepreneurship. This measure of the Government is helping
create large scale job opportunities across the sectors and increase
economic growth of the country," said
the ministry.
As
part of this initiative, DIPP
has issued gazette notification constituting a broad based
Inter-Ministerial Board (IMB) to consider applications of Startups
for claim of certain
incentives.
Startups
are exempted from levy
of income tax on share premium received by eligible Startups under
section 56 of the Act.
They
are also given 100%
deduction of the profits and gains from income of Startups for three
out of seven consecutive assessment years under 80 IAC of the Act.
Applications
for certification of startups under section 56 and Section 80 IAC of
the Act will be submitted through an online portal to DIPP. These
applications will be considered by IMB for certification, it said.
"As
a continuous endeavour of the Government to facilitate startup
eco-system in the country, DIPP has been holding regular stakeholder
consultations including with Government ministries/ departments,
regulators, angel investors and startups," the ministry said.
With
the introduction of amendments through this notification, startups
are likely to have easy access to funding which in turn will ensure
ease in starting of new businesses, promote startup eco-system,
encourage entrepreneurship leading to more job creation and economic
growth in the country, it added.
