New Delhi, Jan 18 (KNN) Industry sources revealed that less than 5 per cent of the 1,869 start-ups acknowledged by the Department for Promotion of Industry and Internal Trade (DPIIT) in Andhra Pradesh have availed Income-Tax exemptions provided by the Union Government under the Start-up India scheme.

As of December 31, 2023, the total number of recognised start-ups enjoying tax benefits nationwide reached 2,975, with less than 50 hailing from Andhra Pradesh, as reported by TH.

Under the Start-up India scheme, only DPIIT-acknowledged start-ups are eligible to apply for tax exemptions under sections 80-IAC and Section 56 of the Income Tax (Angel Tax) Act.

Once granted clearance, start-ups can benefit from a tax holiday for three consecutive financial years within the initial 10 years from incorporation.

Eligibility for Angel Tax exemption mandates that the entity be a recognised start-up, either a private limited or a limited liability partnership, must be incorporated after April 1, 2016.

On the other hand, the criteria for start-up recognition require a turnover of not less than Rs 100 crores in any previous financial year, with a focus on innovation and the potential for employment and wealth creation.

(KNN Bureau)