New Delhi, Jan 16 (KNN) A total of 2,975 government-recognised start-ups have successfully secured income tax exemptions, a senior official stated on Monday.

This development comes under the ambit of Start-up India, a government initiative that extends income tax benefits to qualifying start-ups.

Sanjiv, Joint Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), revealed that, as of December 31 last year, the department officially recognised 1,17,254 start-ups.

Highlighting the growth in start-ups enjoying income tax benefits, Sanjiv stated, “The number of start-ups getting income tax benefits was 1,100 till March 2023, and now it has increased to 2,975 start-ups.”

He further disclosed ongoing efforts to streamline the process, stating that a standard operating procedure (SOP) is being formulated.

This SOP aims to accelerate the examination of applications and issuance of eligibility certificates, essential for claiming tax exemptions.

Addressing the challenges faced by start-ups without eligibility certificates, Sanjiv outlined plans to revamp the entire process, enhancing the ease of doing business for start-ups.

The internal target is set for March 31 to clear pending applications (about 1,500) and improve the overall efficiency of the certification process, he added.

On the intellectual property rights front, the joint secretary shared positive news, stating that the government has granted 1,800 patents to budding entrepreneurs.

Regarding the shift in funding dynamics within start-ups, Sanjiv acknowledged a move towards debt funds. Despite a reduction in funding via equity, he emphasised that the system continues to attract financial resources, with some start-ups opting for the IPO route.

In support of the start-up ecosystem, the government has introduced various schemes, including the Start-up India seed fund scheme, fund of fund scheme, and credit guarantee scheme. These initiatives aim to foster growth, innovation, and financial stability within the start-up community.

(KNN Bureau)