2,975 Startups Recognized by DPIIT Receive Income Tax Benefits
A senior official revealed that 2,975 startups officially recognized by the government have received income tax exemptions under the Startup India initiative. Sanjiv, the Joint Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT), mentioned that as of December 31 of the previous year, the department has acknowledged a total of 117,254 startups.
Sanjiv elaborated that the number of startups benefiting from income tax exemptions has risen from 1,100 in March 2023 to the current count of 2,975. He emphasized the ongoing efforts to establish a standardized operating procedure (SOP) to expedite the assessment of applications for eligibility certificates, crucial for claiming tax exemptions. Sanjiv underscored the importance of these certificates, stating that the absence thereof poses funding challenges for startups.
The official disclosed plans to address startup-related issues through the inter-ministerial board and set an internal target to resolve all pending eligibility certificate applications by March 31. Monthly meetings have been instituted to facilitate this process.
Sanjiv outlined initiatives aimed at simplifying procedures and enhancing the business environment for startups, with a focus on alleviating challenges associated with the absence of eligibility certificates. Regarding support for intellectual property rights, he mentioned the granting of 1,800 patents to emerging entrepreneurs.
Responding to queries about funding trends, Sanjiv noted a shift towards debt funds, indicating that while equity funding might have decreased, startups are exploring alternative avenues such as initial public offerings (IPOs). The government has introduced various schemes, including the Startup India Seed Fund Scheme, Fund of Fund Scheme, and Credit Guarantee Scheme, to bolster support for startups.
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