Eligible start-up deduction for profits from specified business requires certification, audit compliance, and anti-abuse checks. 100% deduction is available in respect of profits derived from an eligible business carried on by an eligible start-up, claimed while computing total income and limited to three consecutive tax years out of ten years beginning from incorporation. Eligibility depends on the prescribed business activity, incorporation period, turnover cap, and certification, while anti-abuse rules restrict splitting up, reconstruction, and transfer of old machinery, subject to limited exceptions. Audit compliance, market value adjustments for inter-business transfers, and recomputation of excessive profits in connected or specified domestic transactions are also required.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Eligible start-up deduction for profits from specified business requires certification, audit compliance, and anti-abuse checks.
100% deduction is available in respect of profits derived from an eligible business carried on by an eligible start-up, claimed while computing total income and limited to three consecutive tax years out of ten years beginning from incorporation. Eligibility depends on the prescribed business activity, incorporation period, turnover cap, and certification, while anti-abuse rules restrict splitting up, reconstruction, and transfer of old machinery, subject to limited exceptions. Audit compliance, market value adjustments for inter-business transfers, and recomputation of excessive profits in connected or specified domestic transactions are also required.
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