InvestorQ : Under the Start-up India program, what are the tax exemptions and benefits that are offered to such eligible companies?
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Under the Start-up India program, what are the tax exemptions and benefits that are offered to such eligible companies?

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1 year ago
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Some of the key tax exemptions can be tabulated as under.

· Start-ups incorporated after April 1, 2016, will be eligible for 100% tax rebate on profit for a period of 3 years in a block of 7 years as long as annual turnover does not exceed Rs.25 crores in any fiscal year.

· Section 54 EE has been inserted in the Income Tax Act for eligible start-ups to claim tax exemption on a long-term capital gain that is reinvested in a government notified fund within 6 months (limit Rs.50L)

· To encouraging angel investors and entrepreneurs, government has exempted the tax on investments above the fair market value. They include investments by angel investors, family and incubators

· Tax exemption to Individual/HUF on investment of long-term capital gain in equity shares of Eligible Start-ups u/s 54GB. This includes gains from sale of real estate property also.

· The carry forward of losses in respect of eligible start-ups is allowed if all the shareholders of such company who held shares carrying voting power on the last day of the year in which the loss was incurred continue to hold shares on the last day of previous year in which such loss is to be carry forward.

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