How do DIPP-registered startups benefit from tax exemptions?
DIPP-registered startups, recognized by the DPIIT (Department for Promotion of Industry and Internal Trade), benefit significantly from tax exemptions under the Startup India Scheme. They enjoy a 100% income tax exemption on profits for three consecutive years within their first ten years of incorporation. Additionally, they are exempt from capital gains tax and angel tax on investments exceeding fair market value. These benefits reduce financial burdens, enabling startups to reinvest earnings into innovation and growth.