Budget 2022: Extends benefits of incorporation for eligible start up for exemption up to 31st March 2023

Budget 2022: Extends benefits of incorporation for eligible start up for exemption up to 31st March 2023 The existing provisions of the section 80-IAC of the Act inter alia, provide for a deduction of an amount equal to one hundred percent of the profits and gains derived from an eligible business by an eligible start-up for three consecutive assessment years out of ten years, beginning from the year of incorporation, at the option of the assesses subject to the condition that,- (i) the total turnover of its business does not exceed one hundred crore rupees, (ii) it is holding a certificate of eligible business from the Inter-Ministerial Board of Certification, and (iii) it is incorporated on or after 1st day of April, 2016 but before 1st day of April 2022. 2. Due to COVID pandemic there have been delays in setting up of such units. In order to factor in such delays and promote such eligible start-ups, it is proposed to amend the provisions of section 80-IAC of the Act to extend the period of incorporation of eligible start-ups to 31st March, 2023. 3. This amendment will take effect from 1st April, 2022 and will accordingly apply in relation to the assessment year 2022-23 and subsequent assessment years.