Is your entity considered as a STARTUP

Not sure… then read this article to know whether your entity is considered as a Startup or not vide Gazette Notification No. G.S.R. 34 (E) dated January 16, 2019.

Startup Meaning:

An entity shall be considered as a Startup:


Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’. An entity shall cease to be a Startup on completion of ten years from the date of its incorporation/registration or if its turnover for any previous year exceeds one hundred crore rupees.


The process of recognition of an eligible entity as Startup shall be as under,


Certification For The Purposes Of Section 80-IAC Of Income Tax Act, 1961

A Startup being a private limited company or limited liability partnership, which fulfils the conditions of section 80-IAC of the Act, may, for obtaining a certificate for the purposes of section 80-IAC of the Act, make an application in Form-1 along with documents specified therein to the Board and the Board may, after calling for such documents or information and making such enquires, as it may deem fit, —


Exemption For The Purpose Of Clause (Viib) Of Sub-Section (2) Of Section 56 Of Income Tax Act, 1961

A Startup shall be eligible for notification under clause (ii) of the proviso to clause (viib) of sub-section (2) of section 56 of the Act and consequent exemption from the provisions of that clause, if it fulfils the following conditions:


A startup fulfilling conditions mentioned above shall file duly signed declaration in Form 2 to DPIIT. On receipt of such declaration, the DPIIT shall forward the same to the CBDT. [Here DPIIT means Department for Promotion of Industry and Internal Trade and CBDT means Central Board of Direct Taxes]

Disclaimer:"The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation."

Prepared By

Kavya P K

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Ankit C Shetty