Which of the statements given below are correct regarding the Start-ups in India?

1. They are less than a decade old entity with a turnover less than 100 crore in any financial year.

2. They are included in the Priority Sector Lending norms of the RBI.

3. They are eligible for tax holidays for three consecutive years before or after 10 years of their inception.

Select the correct answer using the codes given below:

Solution

● Statement 1 is correct: As per the definition of the Ministry of Commerce and Industry, a start up is an entity which has been incorporated within a decade or is in operation for less than 10 years. Such an entity has annual turnover of less than Rs. 100 crore in any financial year since its inception. ● Statement 2 is correct: Reserve Bank of India has included Startup in the ambit of the Priority Sector Lending. Under the Reserve Bank of India guidelines, loans of as much as ₹50 crore to startups, as defined by the commerce ministry, will be considered priority sector credit. ● Statement 3 is incorrect: The startups are eligible for tax holidays for a period of three financial years consecutively out of the 10 years since its inception.