Tax exemption for start-ups with up to ₹10-crore investment

India Startup Tax Concession

The government has decided to levy a tax deduction for entrepreneurs to invest up to 10 crore rupees to encourage establishing companies in India. The Rs 10 crore limit will include individual investors and investments through Angel Investors. This privilege will be given to eligible startup companies under the Income Tax Exemption Section 56 on Share Premium.


A statement issued by the Commerce and Industry Ministry indicated that an angel investor would be entitled to a tax levy of up to 100% while investing in a company from Rs. 25 lakhs to Rs. 2crores.

Startup Companies

The Labor Ministry said that this will facilitate startup companies to get quicker funding and create more employment opportunities through the implementation of the bill for corrections.

Before the Labor Department did not make these amendments, notice was issued on the funds invested to startup companies under section 56 of the Income Tax Act.

How to get concessions

Startup Companies should get inter-ministerial certificate board to receive offers. The Gazette Notification has been posted on the website.

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