Provisions applicable before the amendment (i.e., for the assessment year 2017-18) |
Provisions applicable after the amendment (i.e., from the
assessment year 2018-19) |
• Eligible start-up is a company/LLP which is incorporated on or after April 1, 2016 but before April 1, 2019 |
The benefit of section 80-IAC would be available to a start-up which is incorporated on or after April 1, 2016 but before April 1, 2021. |
• The total turnover of its business does not exceed Rs. 25 crore in any of the previous years beginning on or after April 1, 2016 and ending on March 31, 2021. |
The total turnover of its business does not exceed Rs. 25 crore in the previous year relevant to the assessment year for which deduction is claimed under section 80-IAC |
• It is engaged in the eligible business which involves innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property |
The definition of eligible business has been expanded to provide that the benefit would be available if it is engaged in innovation, development or improvement of products or
processes or services, or a scalable business model with a high potential of employment generation or wealth creation. |
