100% deduction of profits for 3 out of 5 years for startups set-up during April 2016 to March 2019

While presenting the General Budget 2016-17 in Lok Sabha today, the Union Finance Minister Shri Arun Jaitley said that startups generate employment, bring innovation and are expected to be key partners in Make in India programme. He proposed to assist their propagation through 100% deduction of profits for 3 out of 5 years for startups set-up during April 2016 to March 2019. MAT will apply in such cases. However, capital gains will not be taxed if invested in regulated/notified Fund of Funds and by individuals in notified startups, in which they hold majority shares.

Source : Equity Bulls

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