Parliamentary panel recommends relaxation in criteria for recognised startups to avail tax benefits

A parliamentary panel on Thursday recommended relaxation in criteria for eligible startups to claim benefits under income tax law as only 1% of recognised entrepreneurs have availed the benefit.

The department-related Parliamentary Standing Committee on Commerce has expressed concern about the low utilisation of section 80-IAC of the Income Tax Act, 1961, which entitles eligible startups to avail the tax benefit. It was implemented in 2017.