According to a notification of the Income Tax Department, about 120 startups, out of 150 applied for tax relief, have got the exemption from Section 56 (2) viib of the Income-Tax Act, 1961. The remaining startups will also get relief soon once flaws in their applications are corrected.
According to notification of DPIIT in February, consideration received by the eligible startup for shares issued or proposed to be issued will be exempt up to an aggregate limit of Rs 25 crore. Startups were asked to file a duly signed declaration with DPIIT for availing the exemption.
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