The Central Board of Direct Taxes (CBDT) has issued the clarification on the eligibility of small start ups to become eligible to avail the tax holiday benefit under section 80-IAC of the Income Tax Act, 1961. In this context, CBDT has specifically mentioned that the turnover limit for eligiblity for deduction under section 80-IAC of the Act, as per DPIIT’s notification is Rs. 25 crores and the benefit shall be available only in the case where the start ups shall fulfill the conditions specified under the said section. The section allows the eligible start ups to claim deduction of 100% of income for 3 years out of 7 years from the year of its incorporation.
Below is the press release released by the CBDT