Small startups to get tax holiday

New Delhi: The Tax Department on Thursday said small startups with a turnover of up to Rs 25 crore will continue to get the promised tax holiday.

In a statement, the Central Board of Direct Taxes (CBDT) said the tax holiday will continue as specified in the Section 80-IAC of the Income Tax Act, 1961, which provides deduction for 100 per cent of income of an eligible startup for three years out of seven years from the year of its incorporation.

"Startup recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) which fulfils the conditions specified in the DPIIT notification does not automatically become eligible for the deduction under Section 80-IAC of the I-T Act.