Commerce Ministry Highlighted the Success of 'Startup India'

The 'Startup India' initiative has helped the government to generate large-scale employment, said the Commerce ministry on Thursday.

"Government of India launched the ‘Startup India’ initiative on January 16, 2016 to build a strong eco-system for nurturing innovation and entrepreneurship.  This measure of the Government is helping create large scale job opportunities across the sectors and increase economic growth of the country," said the ministry.

As part of this initiative, DIPP has issued gazette notification constituting a broad based Inter-Ministerial Board (IMB) to consider applications of Startups for claim of certain incentives.

Startups are exempted from levy of income tax on share premium received by eligible Startups under section 56 of the Act.

They are also given 100% deduction of the profits and gains from income of Startups for three out of seven consecutive assessment years under 80 IAC of the Act.

Applications for certification of startups under section 56 and Section 80 IAC of the Act will be submitted through an online portal to DIPP. These applications will be considered by IMB for certification, it said.

"As a continuous endeavour of the Government to facilitate startup eco-system in the country, DIPP has been holding regular stakeholder consultations including with Government ministries/ departments, regulators, angel investors and startups," the ministry said.

With the introduction of amendments through this notification, startups are likely to have easy access to funding which in turn will ensure ease in starting of new businesses, promote startup eco-system, encourage entrepreneurship leading to more job creation and economic growth in the country, it added.