Two more startups have qualified for tax breaks as part of the Startup India programme, taking the total to 19. But even that is a very small figure considering over 800 start ups have applied under the scheme so far.
The duo was picked at the third inter-ministerial board meeting on August 5 that considered applications of 13 startups, a senior official told.
One company’s application was deferred to the next round while the rest were rejected.
The two— officials declined to name them – join Kanpur-based Bhurak Technologies Pvt, which was awarded the tax incentive in the second meeting held last month. Only companies registered after April 2016 and satisfying other criteria can apply for exemption.
Of the Rs 10,000 crore fund set up for startups, Small Industries Development Bank of India (Sidbi) has sanctioned Rs 168 crore toward the corpus of six alternative investment funds.
Earlier, SMEpost.com had reported three weeks ago that 728 applications were received till July 18, 2016 for Start Up recognition.Out of them, 180 applications are complete and have been recognised as startups by the Department of Industrial Policy and Promotion (DIPP).
Only 16 applicants are incorporated after April 1, 2016 and are thus eligible for consideration for tax benefits as per the Finance Act 2016.
The applications for tax benefits are examined by the inter-ministerial board.
Out of the 16, three applications were considered in the second meeting of the inter-ministerial board during which one has been recommended for tax benefits and other two have been disallowed.
