2,975 Startups Recognized by DPIIT Receive Income Tax Benefits
- ByStartupStory | January 16, 2024
A senior official announced on Monday that a total of 2,975 government-recognised startups have been granted income tax exemptions under Startup India. Sanjiv, Joint Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT), stated that as of December 31 last year, 117,254 startups have been recognised by the department.
Sanjiv further explained that the number of startups benefiting from income tax exemptions was 1,100 until March 2023, but it has now increased to 2,975 startups. He highlighted the ongoing efforts to develop a standard operating procedure (SOP) for expediting the examination of applications for eligibility certificates, which are necessary to claim tax exemptions. Sanjiv emphasized the significance of these certificates, stating that startups face funding issues in their absence.
The official disclosed plans to address various issues faced by startups through the inter-ministerial board and set an internal target of resolving all pending applications for eligibility certificates by March 31. Additionally, he mentioned monthly meetings to facilitate this process.
Sanjiv outlined initiatives to streamline procedures and enhance the ease of doing business for startups, aiming to eliminate difficulties arising from the absence of eligibility certificates. Regarding intellectual property rights support, he noted that 1,800 patents have been granted to budding entrepreneurs.
In response to queries about funding trends, Sanjiv highlighted a shift towards debt funds, stating that while equity funding may have reduced, startups are exploring other 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 support startups.
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