The Central Board of Direct Taxes (CBDT) has clarified that small start-ups with turnover upto 25 crore rupees will continue to get the promised tax holiday as specified in the section of the Income Tax Act. The Act provides deduction for 100 per cent of income of an eligible start-up for 3 years out of 7 years from the year of its incorporation.
According to the Finance Ministry, the CBDT also clarified that all the start-ups recognised by Department for Promotion of Industry and Internal Trade-DPIIT which fulfilled the conditions specified in the DPIIT notification did not automatically become eligible for deduction.