Apr 192016

Tax Benefits / Exemption Under Stand Up India

A new scheme named the Stand Up India project has been launched by the Modi Govt. in order to provide credit funds to the women, ST and SC categories of the nation so that they can perform entrepreneurship and stand up on their own feet and have their identity in the society. The government will also provide some tax benefits on the credit amount and the beneficiaries do not need to worry about the taxation on the loan amount.

Tax Benefits / Exemption Under Stand Up India

  • Tax rebate for Stand Up India Scheme details

The central govt. has promised to give tax rebate on the loan amount borrowed by the beneficiaries under the Stand Up India Scheme. This tax benefit by the central government will surely help the beneficiaries so that they can put stress on the growth of business, rather than the tax imposed on the huge loan amounts. Three years of total tax benefit is promised to the beneficiaries. So the beneficiaries will be free from huge tax burden for a period of 3 years from the date of joining the scheme. The tax benefit for 3 years is will be applicable only for the start-ups.

  • Tax exemption on the profit earned from the entrepreneurship under Stand Up scheme

After the first three years of 100 per cent tax rebate on the borrowed amount, another tax exemption policy for the borrowers of the Stand Up India scheme is that the Govt. will not charge any tax from the profit earned from the business or entrepreneurship of the Stand Up members. So the profit amount will not fall under taxation and the beneficiaries will only b pay the tax on the capital amount after three years.

  • Stand Up India Scheme important data

Sl. No. Scheme attributes Related data
1 Name of Scheme Stand Up India Scheme
2 Beneficiary eligibility Women, Scheduled Castes, Scheduled Tribes
3 Loan amount Rs. 10 lakh – Rs. 1 crore
4 Tax benefit at beginning 3 years total tax free for start-ups
5 Tax benefit after 3 years Tax rebate on the profit earned
  • Stand Up project implementation          

A number of 2.5 lakh entrepreneurs have been identified for the Stand Up Scheme. This scheme is in support of empowering women of the nation and to help them financially so that they can stand up in the society and make a living of their own. Apart from tax benefits mentioned above, this scheme also gives benefits like long repayment period up to 7 years and low interest rates on the loan. A total Corpus of Rs. 10 thousand is allocated for this project.

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