Startup India
Startup India is a flagship initiative by the Government of India aimed at fostering innovation, supporting startups, and driving sustainable economic growth. It provides resources, tax benefits, funding support, and a robust ecosystem to empower entrepreneurs across the country.
Easy Guide to Startup India Tax Benefits and Registration
By Easy My Tax
Are you planning to start a business in India? The Startup India initiative by the Government of India offers valuable tax benefits and simplified procedures to help startups grow faster and stronger. At Easy My Tax, we make it easy for you to understand and avail these benefits.
What Tax Benefits Are Available for Your Startup?
1. Income Tax Exemption
Startups recognized under the Startup India scheme can claim complete income tax exemption for 3 consecutive years within the first 10 years of incorporation. This means your startup saves money by not paying tax on its profits during this period.
2. Angel Tax Exemption
If your startup raises funds at a valuation higher than its fair market value, the excess amount is usually taxed as "Angel Tax" under Section 56(2)(viib) of the Income Tax Act. But DPIIT-recognized startups get exemption from this tax, making it easier to attract investments.
3. Reduced Patent and Trademark Fees
Startups can get up to 80% reduction in government fees when filing patents and trademarks, protecting their intellectual property affordably.
Eligibility Criteria for Tax Benefits
To avail these benefits, your startup must:
- Be incorporated as a Private Limited Company, LLP, or Partnership Firm
- Be less than 10 years old (up to 15 years for biotech startups)
- Have annual turnover below ₹100 crore
- Be engaged in an innovative product, process, or intellectual property
- Be recognized by DPIIT (Department for Promotion of Industry and Internal Trade)
How to Apply for Startup India Tax Benefits: Step-by-Step (With Easy My Tax)
- Incorporate Your Startup
Register your business as a Private Limited Company, LLP, or Partnership Firm. - Register on the Startup India Portal
Create your profile and submit business details at startupindia.gov.in. - Apply for DPIIT Recognition
Apply for DPIIT recognition through the Startup India portal or National Single Window System (NSWS). - Receive Your DPIIT Certificate
Get your DPIIT recognition certificate and number upon approval. - Claim Tax Benefits
Use the DPIIT certificate to claim income tax and angel tax exemptions when filing your returns.
At Easy My Tax, we assist you through every step to ensure smooth registration and maximum benefits.
Additional Startup Benefits
- Self-certification for Labour & Environmental Laws: Startups can self-certify compliance for 3-5 years, reducing paperwork.
- Fast Winding-Up: Close your startup within 90 days through a simplified process.
Documents Needed
- Certificate of Incorporation or Registration
- Company PAN Card
- Proof of Concept (website, pitch deck, demo)
- Authorization Letter from Company Representative
- Patent or Trademark Details (if any)
- Funding Details (if applicable)
Why Choose Easy My Tax?
Navigating the registration and tax benefits process can be complicated. Easy My Tax offers expert support to register your startup quickly, obtain DPIIT recognition, and help you claim all eligible tax benefits effortlessly — all at affordable prices.
Ready to start your startup journey? Contact Easy My Tax today, and let us help you unlock the full benefits of Startup India!
