Start-up Recognition Services under the Income Tax Act, 1961

Start-up recognition is crucial for businesses seeking benefits under the Income Tax Act, 1961, particularly in terms of exemptions, incentives, and funding opportunities. The government of India, through the Department for Promotion of Industry and Internal Trade (DPIIT), has introduced various schemes and provisions that offer significant tax benefits to recognized start-ups. Our team specializes in providing services to help businesses get recognized as a start-up and benefit from these provisions under the Income Tax Act, 1961.

Further, the Government of India has also extended the benefit of exemption under Section 80-IAC of the Income Tax Act, 1961 for another period of five years. Now, the benefit will be available to eligible startups incorporated before 01.04.2030.

We, at Taxpert Professionals, offer a comprehensive suite of services to assist in obtaining start-up recognition, ensuring compliance with relevant provisions of the Income Tax Act, 1961, rules made thereunder and other applicable regulations.

Key Services Taxpert is offering:

• Start-up Registration & Recognition under DPIIT

We assist in the registration process with the Department for Promotion of Industry and Internal Trade (DPIIT), which is essential for availing various tax benefits, including tax exemptions on profits under Section 80-IAC of the Income Tax Act, 1961, seed funding opportunities, and eased regulatory requirements.

• Assistance in Preparation of Required Documents

We help clients prepare and organize the necessary documents for start-up recognition, covering the innovative nature of the business, product or service details, and a declaration of the company’s growth stage. Our team ensures accurate submission to meet the DPIIT criteria.

• Tax Exemption and Incentive Analysis

We provide analysis and guidance on how your start-up can avail of tax exemptions—such as a 100% tax deduction for three consecutive years within a block of 10 years under Section 80-IAC—ensuring you benefit from all available incentives.

• Support in Claiming Exemptions from Capital Gains Tax

Start-ups recognized by the DPIIT are eligible for capital gains tax exemptions under Section 54GB of the Income Tax Act, 1961. We assist you in understanding and claiming these exemptions, which can be critical for reinvesting funds in your business.

• Advisory on Funding Support and Grants

We provide guidance on various government schemes and funding opportunities available to recognized start-ups, including access to the Start-up India Seed Fund Scheme, Government Venture Capital Funds, and angel investor tax incentives.

• Facilitation of Compliance with Startup India Guidelines

We ensure your start-up adheres to the Startup India guidelines, helping you maintain eligibility for ongoing government benefits through compliance with annual filing and reporting requirements.

• Regulatory Support and Corporate Structure Advisory

Our team offers strategic advisory on setting up the most effective corporate structure for your start-up to maximize benefits, ensuring long-term sustainability and tax efficiency. This includes guidance on establishing your business under the appropriate legal structure, such as a Private Limited Company or LLP, to qualify for start-up recognition.

• Assistance with Taxation and Compliance Framework

We offer a comprehensive review of your tax filing process, assisting in the preparation of all required tax returns and documentation to ensure compliance with the Income Tax Act and other statutory regulations.

• Tailored Tax Planning and Structuring for Start-ups

We design customized tax strategies to optimize your start-up's tax liability, including managing investments, securing appropriate tax exemptions, and utilizing tax credits, with a focus on fostering growth and scalability.

Why to Choose Taxpert for Start-up Recognition Services?

• Expertise and Experience

Our team is well-versed in the complex provisions of the Income Tax Act, 1961 which relates to start-up recognition. We stay updated on all the government schemes and tax laws that can benefit your start-up.

• Comprehensive Approach

We offer end-to-end services, from documentation and recognition to ongoing compliance management, ensuring your business meets the criteria for government benefits throughout its growth trajectory.

• Tailored Solutions

Understanding the unique nature of every start-up, we provide personalized guidance and solutions to ensure your business aligns with regulatory requirements while optimizing for tax benefits.

• Government Relations, Liaisoning and Networking

Our extensive network and experience with government agencies allow us to facilitate smooth interactions with the relevant bodies, ensuring efficient approval and minimizing the time it takes for your start-up to receive recognition and benefits.

• Risk Mitigation

We help identify and mitigate any potential risks that could affect your eligibility for government benefits, ensuring you meet all regulatory compliance requirements and avoid unnecessary penalties.

• Timely Filing and Documentation

We ensure that all your start-up recognition filings are completed on time, avoiding delays and ensuring compliance with regulatory deadlines, so you don’t miss out on valuable benefits.

• Cost Efficiency

We understand the challenges faced by start-ups and aim to provide cost-effective services that deliver value by minimizing unnecessary tax burdens and maximizing available benefits and incentives.

• Partnering with Us

Partnering with us ensures that your start-up receives all possible support in meeting eligibility requirements and availing of the significant tax benefits and government schemes available under the Income Tax Act, 1961. With our expertise, your start-up can focus on scaling and growing with confidence.