Budget 2017 - 18 : Extending the period for claiming deduction by
start-ups
The existing provisions of section 80-IAC, inter
alia, provide that an eligible start-up shall be allowed a deduction of an
amount equal to one hundred per cent of the profits and gains derived from
eligible business for three (3) consecutive assessment years out of five years
beginning from the year in which such eligible start-up is incorporated.
In
view the fact that start-ups may take time to derive profit out of their
business, it is proposed to provide that deduction under section 80-IAC can be
claimed by an eligible start-up for any three consecutive assessment years out
of seven (7) years beginning from the year in which such eligible start-up is
incorporated.
This amendment will take effect from 1st April, 2018 and will
accordingly, apply in relation to assessment year 2018-19 and subsequent
years. [Clause 36]
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