KSMG EXPERTISE

Tax Guidance Tailored for India's Startup Ecosystem

Helping startups navigate specific tax regulations, claim eligible exemptions (like Section 80-IAC), and structure for growth and funding effectively.

  • DPIIT recognition and tax benefits
  • Angel tax exemption guidance
  • Income tax holiday under Section 80-IAC
  • Funding and ESOP tax planning

Key Tax Considerations for Startups

India offers specific tax benefits for DPIIT-recognized startups. Our services include:

DPIIT Recognition

Advising on eligibility criteria for DPIIT recognition and tax benefits, with assistance in obtaining registration.

Income Tax Holiday

Guidance on claiming the Income Tax Holiday under Section 80-IAC, including IMB certification.

Angel Tax

Advisory on navigating 'Angel Tax' (Sec 56(2)(viib)) provisions and available exemptions.

Structure Optimization

Structuring operations to maximize eligibility for benefits.

Funding Implications

Advising on tax implications of funding rounds and ESOP issuance.

Compliance Support

Assistance with compliance related to conditions attached to exemptions.

Startup Tax Planning

Leverage dedicated tax exemptions and benefits to fuel your startup's growth journey.

DPIIT Recognition 80-IAC Benefits Angel Tax Exemption ESOP Planning

Why Specialized Advice Matters

For startups, managing cash flow and attracting investment are paramount. Specialized tax guidance helps:

  • Conserve Capital: Utilize available exemptions correctly to preserve crucial early-stage capital.
  • Attract Investors: Enhance attractiveness to investors by mitigating potential tax liabilities (like Angel Tax).
  • Establish Compliance: Ensure long-term viability by establishing compliant structures from the start.
  • Funding & Equity Impact: Understand the tax impact of crucial decisions like funding and employee equity.
  • Benefit Protection: Avoid loss of benefits due to non-compliance with specific conditions.

Our Methodical Approach

1

Startup Initiative Guidance

Providing clear guidance on the Startup India initiative and associated tax rules to help you understand available benefits.

2

DPIIT Registration Support

Assisting eligible entities throughout the DPIIT registration process to establish official startup status recognition.

3

Structure Optimization

Helping structure operations for optimal benefit claims (e.g., 80-IAC) and advising on Angel Tax implications and available safe harbors or exemptions.

4

ESOP & Growth Phase Support

Offering guidance on tax-efficient ESOP design and implementation, while providing ongoing compliance support relevant to a startup's growth phase.

Optimize Your Startup's Tax Position

Our specialized startup tax team can help you navigate India's complex startup taxation landscape, ensuring you maximize available benefits while maintaining full compliance with regulatory requirements.