TMI BlogBudget 2018 - boost to the startups and employmentX X X X Extracts X X X X X X X X Extracts X X X X ..... Budget 2018 - boost to the startups and employment - By: - CS Swati Dodhi - Budget - Dated:- 2-2-2018 - - Measures to promote start-ups - Section 80-IAC of the Act provides that deduction under this section shall be available to an eligible start-up for 3 consecutive assessment years out of 7 years at the option of the assessee, if- <!--[if !supportLists] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... --> 1. <!--[endif]--> It is incorporated on or after April 1, 2016 but before April 1, 2019 ; <!--[if !supportLists]--> 2. <!--[endif]--> The total turnover of its business does not exceed ₹ 250 million in any of the previous years beginning on or after April 1, 2016 and ending on March 31, 2021; and <!--[if !supportLi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sts]--> 3. <!--[endif]--> It is engaged in the eligible business which involves innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property. <!--[if !supportLists]--><!--[endif]--> Thus for promoting start-ups in India , it is proposed to make following changes in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the taxation regime for the start-ups: 1. <!--[endif]--> The benefit would also be available to start ups incorporated on or after April 1, 2019 but before April 1, 2021 ; <!--[if !supportLists]--> 2. <!--[endif]--> The requirement of the turnover not exceeding ₹ 250 million would apply to 7 previous years commencing f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the date of incorporation; <!--[if !supportLists]--> 3. <!--[endif]--> The definition of eligible business has been enlarged to provide that the benefit would be available if it is engaged in innovation, development or improvement of products or processes or services, or a scalable business model with a high potential of employment generation or wealth creation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The amendment will take effect from April 1, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent assessment years. Incentive for employment generation - Under section 80-JJAA of the Act , a deduction of 30 per cent is allowed in addition to normal deduction of 100 per cent in respect of emoluments pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to eligible new employees who have been employed for a minimum period of 240 days during the year. However, the minimum period of employment is relaxed to 150 days in the case of apparel industry. <!--[if !supportLists]--> 1. <!--[endif]--> It is proposed to extend this relaxation to footwear and leather industry. Further, it is also proposed to rationalize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this deduction of 30 per cent by allowing the benefit for a new employee who is employed for less than the minimum period during the first year but continues to remain employed for the minimum period in subsequent year. This amendment will take effect, from April 1, 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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