Startups with a DIPP Unique ID can petition for income tax exemption, according to Khushbu Verma, a spokesman of Startup India. Startups that have been established for less than ten years are eligible for this exemption. Startups would be excluded from paying income tax for up to three years in a row, according to Khushbu Verma’s statement to channeliam.com.
Startups having a distinct ID registered in Startup India are exempt from Section 56’s requirement to pay angel tax. An early-stage startup cannot qualify for income tax advantages. Startups are only eligible to apply for the benefit two years following their incorporation. According to Khushbu Verma, one may only request a tax exemption if they have financial records going back at least three years.
