DPIIT has issued notification for exemptions on investments in start-ups u/s 56(2) (viib) of Income Tax Act after Ministry of Commerce & Industry clears the proposal.

Highlights:

• Definition of Start-ups to be expanded, an entity to be up to 10 yrs from date of incorporation and turnover not exceeding Rs. 100 crores in a year.
• For exemption, start-up to be a private limited co. recognized by DPIIT and not investing in assets as mentioned in the list.
• Consideration received by Start-ups for shares issued/ proposed to be issued to be exempted up to aggregate limit of Rs. 25 crores.
• Start-ups to file signed declaration with DPIIT for availing exemption and sent to CBDT.

For more: http://egazette.nic.in/WriteReadData/2019/198117.pdf