CAIIB · ABFM · Chapter 20

Start Up Finance (Part 1)

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Business and Financial Management — CAIIB.

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Q

What is Startup India Hub?

A

is the single-window online portal that offers a suite of services and connects aspirants with incubators, investors, mentors, accelerators, government bodies and other ecosystem builders.

Q

1 — Category / Indicative Actions?

A

Category: Financial assistance and incentives; Indicative Actions: Fund of Funds, tax holiday u/s 80-IAC, capital-gains exemption, seed-fund support

Q

2 — Category / Indicative Actions?

A

Category: Industry–academia collaboration; Indicative Actions: Atal Innovation Mission, incubation grants, R&D parks, innovation labs

Q

3 — Category / Indicative Actions?

A

Category: Simplification and coercion (handholding); Indicative Actions: Self-certification on labour/environment laws, mobile app for compliance, easier patent filing & IPR support

Q

Tax incentives?

A

100 % income-tax exemption on profits for 3 consecutive years out of the first 10 years under Section 80-IAC of the Income-Tax Act, 1961 (subject to inter-ministerial board approval and turnover cap).

Q

Capital-gains tax exemption?

A

under Section 54EE (investment in notified Fund of Funds) and Section 54GB (sale of residential property re-invested in eligible start-up).

Q

Government funding support?

A

through the Fund of Funds for Startups (FFS) of ₹10,000 crore corpus operated by SIDBI, deployed via SEBI-registered AIFs (Alternative Investment Funds).

Q

Priority treatment in public procurement?

A

Rule 170(1) and Rule 173 of GFR 2017 (covered below).

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