NEW DELHI: The government has come out with a uniform definition of startups under which a budding entrepreneur with a turnover of less than Rs 25 crore can avail tax breaks and other benefits for a five-year period.

Notifying the definition, the Department of Industrial Policy and Promotion (DIPP) said it would bring about "uniformity" and ensure that only genuine startups get the benefits.

It further said that entities formed by splitting or re-construction of existing businesses will not be considered as startups.

"In order to obtain tax benefits a startup so identified under the above definition shall be required to obtain a certificate of an eligible business from the Inter-Ministerial Board of Certification," DIPP said in a notification.

The Board would consist of Joint Secretary, DIPP, Representatives of Department of Science and Technology, and Department of Biotechnology.

The process of recognition as a 'startup' would be through mobile app/portal of the DIPP.

Startups will also be required to submit a simple application with certain documents including a letter of funding of not less than 20% in equity by any incubation fund/angel fund/private equity fund/ duly registered with Sebi that endorses innovative nature of the business.

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