1. Section 80-IAC is inserted by the
Finance Act, 2016, w.e.f. 1-4-2017.
2.
Where
the gross total income of an assessee, being an eligible start-up, includes any
profits and gains derived from eligible business, there shall, in accordance
with and subject to the provisions of this section, be allowed, in computing
the total income of the assessee, a deduction of an amount equal to one hundred
per cent of the profits and gains derived from such business for three
consecutive assessment years.
3.
Eligible
business means a business carried out by an eligible start up engaged in innovation,
development or improvement of products or processes or services or a scalable
business model with a high potential of employment generation or wealth creation.
4.
The
deduction may, at the option of the assessee, be claimed by him for any three
consecutive assessment years out of ten years beginning from the year in which
the eligible start-up is incorporated.
5.
Eligible
start-up" means a company or a limited liability partnership engaged in
eligible business which fulfils the following conditions, namely: -
a.
it
is incorporated on or after the 1st day of April, 2016 but before the 1st day
of April, 2023;
b.
the
annual business turnover does not exceed Rs. 25 Crores (Rs. 100 Crores from the
Assessment Year 2021-22) in the previous year relevant to the assessment year
for which deduction is claimed under the section.
c.
it
holds a certificate of eligible business from the Inter-Ministerial Board of
Certification as notified in the Official Gazette by the Central Government;
6.
This
section applies to a start-up which is not formed by splitting up, or the
reconstruction, of a business already in existence and is not formed by the
transfer to a new business of machinery or plant previously used for any
purpose.
7.
Any
machinery or plant which was used outside India by any person other than the
assessee shall not be regarded as machinery or plant previously used for any
purpose, if all the following conditions are fulfilled, namely: -
a.
such
machinery or plant was not, at any time previous to the date of the
installation by the assessee, used in India;
b.
such
machinery or plant is imported into India;
c.
no
deduction on account of depreciation in respect of such machinery or plant has
been allowed or is allowable under the provisions of this Act in computing the
total income of any person for any period prior to the date of the installation
of the machinery or plant by the assessee.
d.
Where
any machinery or plant or any part thereof previously used for any purpose is
transferred to a new business and the total value of the machinery or plant or
part so transferred does not exceed twenty per cent of the total value of the
machinery or plant used in the business, then the condition specified therein
shall be deemed to have been complied with.
8.
KKACA™
assist with: -
a.
Registration
with Department for Promotion of Industry and Internal Trade DPIIT.
b.
Seeking
Inter-Ministerial Board of Certification.
9.
https://www.startupindia.gov.in/content/dam/invest-india/Templates/public/198117.pdf