New Delhi, Feb 19 (KNN) Revising the current definition of startups and addressing the raging issue of angel tax, Union Minister Suresh Prabhu said that an entity shall be considered a startup up-to 10 years from its date of incorporation / registration instead of the existing period of 7 years.

"An entity shall be considered a startup if its turnover for any of the financial years since its incorporation/registration hasn’t exceeded Rs 100 Crore instead of existing Rs 25 crore," he said.

Revising the definition aims at relaxing the norms and making it easier for startups to thrive in the country.

The government has further expanded the turnover criteria as well.

Now a firm can be a startup even if its turnover for any of the financial years since its incorporation hasn’t exceeded Rs 100 crore instead of the existing cap of Rs 25 crore.

The minister added that all investments into eligible Startups by Non-Residents, Alternate Investment Funds- Category I registered with SEBI shall also be exempt under Section 56(2)(viib) of Income Tax Act beyond the limit of Rs 25 crores. (KNN/JM)