CBIC Issues Clarification on Place of Supply for Custodial Service by Banks to Foreign Portfolio Investors

The Department for Promotion of Industry and Internal Trade (DPIIT) offers recognition to startups under the Startup India initiative, providing numerous benefits to foster growth and innovation. Registered startups are eligible for income tax exemption for their first three years, subject to meeting certain criteria, including a cap on paid-up capital and turnover. Additionally, startups recognized by DPIIT can access funding support and network with investors and mentors, boosting credibility and visibility. A key incentive is the exemption from Angel Tax (Section 56(2)(viib) of the Income Tax Act), which taxes excess share issuance at a premium. Startups must ensure their paid-up capital and premium do not exceed Rs 25 crore post-issuance and meet specific turnover criteria to qualify for this exemption. Furthermore, Section 80-IAC of the Income Tax Act allows eligible startups to claim a 100% tax deduction on profits for three consecutive years, encouraging innovation-driven businesses. These initiatives aim to create a favorable environment for startups, stimulating investment and entrepreneurship in India.