Easing norms for Start-ups in India
To promote the startup culture in India, the Finance Ministry has made provisions for improving the start-up ecosystem by easing some financial norms.?
What has happened?
- The Finance Ministry has simplified the entire process of assessment for the start-up entities in India.
- The nodal authorities for these changes are the CBDT.?
- Primarily, the new norms deal with all investigations in startups where any contention made by the assessee will be summarily accepted by the CBDT.
- Following this, all investigations, assessment proceedings and inquiry on these issues will be carried out by the Assessing Officer of the CBDT only after obtaining the complete approval of the supervisory authorities.
Startups in India
- A startup in India is defined as any company which satisfies the following norms-
- The Period of the existence of the company and its years of operations should not be more than 10 years from the Date of its Incorporation.
- The company should not have an annual turnover exceeding Rs. 100 crore in any of its financial years since the year of its Incorporation.
- The company should be an original entity and should have not have been formed by the split-up or reconstruction of an already existing company.
- The company should work towards the development or improvement of a product, process or service (Something which would count for a tangible innovation).
- The company must have a scalable business model which will ensure a high potential for wealth creation and employment generation.
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