Thursday, September 19, 2019
News

Start-ups with turnover up to Rs 25 crore to get promised tax holiday: CBDT

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

New Delhi | August 22, 2019 6:11:46 PM IST
The Central Board of Direct Taxes (CBDT) clarified on Thursday that small start-ups with turnover up to Rs 25 crore will continue to get the promised tax holiday as specified in Section 80-IAC of the Income Tax Act 1961 which provides deduction for 100 per cent of income for three out of seven years from the year of incorporation.

It said a start-up recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) which fulfills the conditions specified in the DPIIT notification does not automatically become eligible for the deduction under Section 80-IAC of the I-T Act.

"It has to fulfill the conditions specified in Section 80-IAC for claiming this deduction," the CBDT said in a statement. "Therefore, the turnover limit for small start-ups claiming a deduction is to be determined by the provisions of Section 80-IAC of the I-T Act and not from the DPIIT notification."

The clarification is aimed at clearing confusion created by some reports claiming discrepancy that I-T law is yet to reflect DPIIT's higher turnover threshold of Rs 100 crore. The turnover limit for eligibility for deduction under section 80-IAC of the I-T Act as per the DPIIT's notification is also Rs 25 crore.

"It is pertinent to state here that Section 80-IAC was inserted vide Finance Act 2016 as an exception to the government's stated policy of phasing out a profit-linked deduction for promoting small start-up during their initial year of operation. As the intention was to support the small start-up, the turnover limit of Rs 25 crore is considered as reasonable for granting profit linking deduction," said the CBDT. (ANI)

 
  LATEST COMMENTS ()
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Here's how Bajaj Finserv's pocket insura...
FM reminds Biocon chief of govt's fiscal...
Yes Bank tanks by 11 pc after CARE downg...
Sensex drops by 496 points while Nifty h...
Socomec unveils new DIRIS Digiware S pow...
Helo launches third edition of 'Helo Sup...
More...
 
INDIA WORLD ASIA
Jharkhand ex-Congress chief joins AAP ah...
BJP against changing WB's name, will nev...
Haryana: 3 IAS, 6 HCS officers reshuffle...
J-K Police to fill 8,500 vacancies soon...
Capt Amarinder reiterates demand for wit...
UP touched new heights of development in...
More...    
 
 Top Stories
Can't do high heels: Swara shares f... 
Varun Dhawan to give a platform to ... 
Ranveer Singh to get wax statue at ... 
Ayushmann to romance Jitendra Kumar... 
Vicky Kaushal: I Will start shootin... 
FIFA Awards to be telecast live in ... 
Sonakshi Sinha wants to be an ambas... 
Babul Supriyo heckled at Jadavpur U...