File photo of Minister of State for Commerce & Industry (Independent Charge) Nirmala Sitharaman addressing the opening session of launch of the Start Up India, in New Delhi, Jan. 16. (Press Information Bureau)
Only 16 applicants have been incorporated under the Start Up India program after April 1 this year making them eligible for tax sops out of which two have already been disallowed, Parliament was informed, July 20. – @Siliconeer #Siliconeer #StartupIndia #NirmalaSitharaman #narendramodi #DigitalIndia
A total of 728 applications were received till July 18, for Start Up recognition, Commerce and Industry Minister Nirmala Sitharaman said in a written reply in the Rajya Sabha.
“Out of them, 180 applications are complete and have been recognized as startups by the Department of Industrial Policy and Promotion (DIPP),” she said.
The minister further said: “Only 16 applicants are incorporated after April 1, 2016 and are thus eligible for consideration for tax benefits as per the Finance Act 2016.”
The applications for tax benefits are examined by the inter-ministerial board.
Out of the 16, three applications were considered in the second meeting of the inter-ministerial board during which one has been recommended for tax benefits and other two have been disallowed.
Incentives under the Start Up India program include income tax exemption for three years in a block of five years if they are incorporated between April 1, 2016 and March 31, 2019. However, to avail of these benefits an applicant must get a certificate of eligibility from the Inter-ministerial board.
Sitharaman said in order to increase the coverage of startups in the country several steps have been taken up by her ministry, including setting up of Startup India Hub to resolve queries and provide handling support to startups.
Besides asking States and Union Territories to partner with DIPP to take the Start Up India initiative forward, she said: “Top 50 companies in India have been requested to contribute towards strengthening the incubation facilities in the country through their Corporate Social Responsibility (CSR) initiatives.”