BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership. Turnover should be less than INR 100 Crores in any of the previous financial years. An entity shall be considered as a startup up to 10 years from the date of its incorporation.

Detailed explanation-2: -The startup India action plan term “Startup” as an individual entity which has to be registered with the Government of India (not prior to 5 years) and the annual turnover should not exceed 25 crores in any financial year.

Detailed explanation-3: -This notification is intended to exempt startups from the provisions of section 56(2)(viib) of the Income Tax Act, 1961, which states that any consideration received by a startup for the issue of shares in excess of the fair market value shall be taxable as income from other sources.

Detailed explanation-4: -Startups are eligible for 100% exemption of tax excluding the Minimum Alternate Tax (MAT) which will follow the 18.5% of the profit as stated in the books, on earnings for the first three years. To qualify, startups must be registered with the Department of Industrial Policy and Promotion (DIPP).

Detailed explanation-5: -The board shall validate startups for the Income Tax Exemption on profits under Section 80-IAC of Income Tax Act: A DIPP recognized Startup shall be eligible to apply to the Inter-Ministerial Board for full deduction on the profits and gains from business.