QED Budget highlights 2018.pdf

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Deduction under section 80-IAC shall be available to an eligible start-up for three consecutive
assessment years out of seven years at the option of the assesse. In order to improve the
effectiveness of the scheme for promoting start-ups in India, it is proposed to make following
changes in the taxation regime for the start-ups:—

(i) The benefit would also be available to start ups incorporated on or after the 1st day of
April 2019 but before the 1st day of April, 2021;
(ii) The requirement of the turnover not exceeding Rs 25 Crore would apply to seven
previous years commencing from the date of incorporation;
(iii)The definition of eligible business has been expanded to provide that the benefit would be
available if it is 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.
The amendment will take effect, from 1st April, 2018 and will, accordingly, apply in relation
to the assessment year 2018-19 and subsequent assessment years.