Startup Recognition, Tax Exemption & Government Funding Assistance
At Shivprasad Sakhare & Co (Chartered Accountants), we assist startups in obtaining Startup India recognition, tax exemptions, and government funding under various schemes. Our expert team ensures your business qualifies for benefits and maximizes financial advantages while staying compliant with regulation.
1. Startup Recognition under DPIIT (Startup India Initiative)
We help startups get recognized under the Department for Promotion of Industry and Internal Trade (DPIIT), unlocking multiple benefits:
- Eligibility Assessment & Documentation
- Application Filing for DPIIT Recognition
- Guidance on Meeting Innovation & Scalability Criteria
- Certificate of Recognition for Startup India Benefits
Key Benefits of DPIIT Recognition
- Self-certification under labor & environmental laws
- Faster patent & trademark filing with 80% rebate
- Exemption from Angel Tax under Section 56(2)(viib)
- Access to government tenders & easy public procurement
2. Tax Exemptions for Startups
Startups recognized under Startup India can avail of tax benefits under various sections of the Income Tax Act:
a) Section 80-IAC: 3-Year Tax Holiday
- 100% tax exemption on profits for 3 consecutive years out of the first 10 years
- Only for private limited companies or LLPs incorporated after April 1, 2016
- Turnover should not exceed Rs. 100 crore in any financial year
b) Angel Tax Exemption under Section 56
- Exemption from tax on share premium received from investors
- Applies to DPIIT-recognized startups raising funding
c) Capital Gain Tax Exemption (Section 54EE & 54GB)
- 54EE: Capital gains exemption on investment in specified funds
- 54GB: Exemption for investment in a startup from the sale of residential property
d) TDS & GST Benefits
- Lower TDS deductions under Section 194J (Professional Fees) & 194C (Contractor Payments)
- GST benefits, including refunds on input tax credit
3. Startup Funding from Government Schemes
We help startups apply for and secure funding from government schemes such as:
a) Fund of Funds for Startups (FFS) - SIDBI
- Government-backed venture funding for equity investment in startups
- Managed through SEBI-registered Alternative Investment Funds (AIFs)
b) Startup India Seed Fund Scheme (SISFS)
- Up to Rs. 50 lakh for prototype development & proof of concept
- Grant-based funding for early-stage startups
c) Credit Guarantee Scheme for Startups (CGSS)
- Collateral-free loans up to Rs. 10 crore
- Guaranteed by National Credit Guarantee Trust Company (NCGTC)
d) MSME Startup Loans & Mudra Loans
- PMMY (Pradhan Mantri Mudra Yojana) for micro & small startups
- Loans categorized as Shishu (up to Rs. 50,000), Kishore (up to Rs. 5 lakh), and Tarun (up to Rs. 10 lakh)
e) Atal Innovation Mission (AIM) & NIDHI Scheme
- Funding support for deep-tech startups & research-based innovation
- Grants & seed capital from DST (Department of Science & Technology)
Why Choose Us?
- Expert Guidance on Startup Recognition & Compliance
- End-to-End Support in Government Funding & Grants
- Maximizing Tax Benefits & Reducing Liabilities
- Customized Financial Strategies for Startup Growth