If you are thinking about taking advantage of the Startup India program then you have to fulfill one of these conditions. In order to qualify for Startup India, you have to tell how many new employment opportunities will be created from your plan. In fact, the government is pushing for employment generation in all its major programs. A senior government official said, “We will notify the new rounds for startups soon. Under this definition, there will be other things besides innovation. ‘
Innovation is the main condition in front of startups to take advantage of tax breaks and fast tracking of patent filings under the Startup India program. To qualify under the new definition, an entity will have to tell how many opportunities it will create for employment. In addition, it has to meet some financial standards. Apart from this, the aspect of innovation in your product or service must be proved.
The government official said, “We will look at these aspects when examining applications for giving tax benefits.” When Prime Minister Narendra Modi launched the startup India program in January 2016, its real focus was on creating employment opportunities for the youth in the country, but it was not included as mandatory condition. This program has not got much success till now and an inter-ministerial board has found only 10 startups worth getting tax benefits.
DIPP accepted 798 applications as startups, but they did not give tax benefit to them. Companies formed after March 31, 2016, can get tax exemption for three years from the first seven years of their existence under the Startup India program.