The government of India has created many initiatives from which businesses can gain access, including the STARTUP INDIA program, to support and foster them. This initiative's creation of a climate that supports entrepreneurship in the nation and stimulates new business ventures is one of its main goals. Startups are entitled to a full tax exemption, except the Minimum Alternate Tax (MAT), which will be applied to earnings for the first three years at a rate of 18.5% of the profit reported in the books. Startups must register with the Department of Industry Policy and Promotion to be eligible (DIPP). As the costs of starting a firm are already a significant financial burden on entrepreneurs, receiving a three-year tax exemption would enable them to balance their budgets and break even sooner, which will increase their earnings in the long run.
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