Two more startups identified for tax incentives under Startup India

After Kanpur-based Bhurak Technologies Pvt that was awarded the tax incentive of Startup India campaign last month, two more startups now have been qualified for tax breaks.

As reported by ET, these two startups were identified at the third inter-ministerial board meeting on Friday, which considered applications of 13 startups, a senior official told them. The names are yet to be disclosed.

While one company’s application was deferred to the next round the rest were rejected.

Companies, which have registered themselves after April and have satisfied the other criteria of the campaign can apply for the tax incentives.

These criteria include a recommendation by an authorised incubator, which would ensure that innovation is a key aspect of the startup’s business.

Last Friday, Singapore-registered LetsVenture and Kerala-based KSIDC Business Incubation Centre were added to the list of authorised incubators. Establishing a network of incubators is a thrust area of the department of industrial policy & promotion (DIPP).

Last year, 20 private organisations were added to the pool of 278 government-run incubators allowed to certify and recommend startups. DIPP is also pushing for extending tax benefits under the programme to seven years from three now.

Reportedly, out the Rs 10,000 crore fund of funds that was set up for startups, Small Industries Development Bank of India (Sidbi) has sanctioned Rs 168 crore toward the corpus of six alternative investment funds.