Why is PAN card Important?

Based on the Circular by GOI, CBDT as on 17th November 2016, PAN will be mandatory for these 5 new transactions along with the earlier list of transactions.

The Income Tax Department prescribes a list of transactions for which quoting of Permanent Account Number (PAN) is mandatory. These are listed in Rule 114B of the Income Tax Rules, 1962 that were first inserted with effect from 1st November 1998 and have been amended from time to time. The list under Rule 114B as on date requiring PAN to be quoted includes the following banking transactions:

a. Deposit with a banking company or a co-operative bank in cash exceeding fifty thousand rupees during any one-day.

b. Purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank in cash for an amount exceeding fifty thousand rupees during any one-day.

c. A time deposit with a banking company or a co-operative bank or a Post Office

d. Opening an account [other than a time-deposit referred to above or a Jandhan / Basic Bank Deposit Account] with a banking company or a co-operative bank.

In addition to the existing requirement of quoting of PAN in respect of cash deposits in excess of Rupees fifty thousand in a day, quoting of PAN will now also be mandatory in respect of cash deposits aggregating to Rupees two lakh fifty thousand or more during the period 09th November, 2016 to 30th December, 2016 as per an amendment notified by CBDT on 15-11-2016.

The Department has already issued close to 25 crore PAN till date. You can also apply for PAN applying to the NSDL in a prescribed format with the necessary documentary proof.

In case you are having trouble we can help you with your PAN application. Please contact us on +91 7022251221, 080-40463170 or drop in an email at info@unicomply.com

Understanding Demonetization

Why Demonetization?

The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for antinational and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw the specified notes has been introduced.

What is Demonetization?

The legal tender character of the existing bank notes in denominations of 500 and 1000 issued by the Reserve bank of India till November 8, 2016 (hereinafter referred to as Specified Bank Notes) stands withdrawn. In consequence thereof these Bank Notes cannot be used for transacting business and/or store of value for future usage. The Specified Bank Notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches of commercial banks/ Regional Rural Banks/ Co-operative banks or at any Head Post Office or Sub-Post Office.

District Central Cooperative Banks (DCCBs) can allow their existing customers to withdraw money from their accounts upto (24,000 per week upto November 24, 2016. No exchange facility against the specified bank notes (500 and 1000) or deposit of such notes should be entertained by DCCB’s. The Reserve Bank has accordingly advised all banks to permit withdrawal of cash by DCCBs from their accounts based on need.

How much time to exchange the notes and make cash deposits?

The scheme closes on December 30, 2016. The Specified banknotes upto 4500 per day can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till November 24, 2016 and the cash amount can be deposited till 30th December, 2016, at specified RBI offices. As there is ample time, people need not rush to exchange putting avoidable strain on the banking branch network.

Proof of identity that needs to be carried to exchange/ deposit the Specified bank notes

Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff.

A brief summary of the dates, events and remarks are given below for your better understanding:

Start Date


End Date

Limits (Rs.)



Old Currency notes are no longer valid. Certain specified outlets still accept the old currency till the end date.


will still be accepted in Petrol Pumps, government hospitals, Railway, airline, government bus ticket booking counters, Consumer co-operative stores run by state or central government, Milk booths authorized by state governments, Crematoriums and burial grounds till 11th November 2016.


ATMs shut down and Banks closed to public.


ATMs will not work and banks will not be accessible to public  to adjust to the changes made.


Old Notes can be deposited in banks


Valid Bank Account or Post Office saving account


Old Notes can be exchanged for new ones.


4,500/-amount to be reviewed later

Original Identity Proof with a copy in the form of Aadhaar card, PAN Card, ration card, passport, driver license.  Exchange can be made in all branches of commercial banks/RRBS/UCBs/State Co-op banks or at any Head Post Office or Sub-Post Office and all Issue Offices of RBI


Money can be withdrawn from ATMs.


2,000/- per day


Money can be withdrawn from Banks

10,000/- per day limited to 20,000/- per week

Weekly amount includes amount withdrawn from ATMs.


Amount that can be withdrawn from ATMs is increased.

4,000/- per day


Old Notes can be deposited in cases where depositing before 30-12-2016 was not possible.


ID Proof, Pan & Declaration Form

Foreign Tourists

within 72 hours after the notification

foreign exchange equivalent to Rs. 5,000/-

provide proof of purchasing the old notes

Person not in India

authorize in writing enabling another person in India to deposit the notes

Same as for any Indian

Same as for any Indian

person so authorized has to come to the bank branch with the old notes along with the authorization letter and a valid identity proof


Same as for any Indian

Same as for any Indian

deposit the old banknotes to their NRO account.

I have a problem, whom should I approach?

You may approach the control room of RBI by email or on Telephone Nos 022 22602201/022 2260294.

You can also contact us on +91 7022251221, 080-40463170 or drop in an email at info@unicomply.com


Firstly lets understand what is a High value cash Transaction?

With an aim to curb black money mess and to track high value cash transactions, the government has decided to implement new reporting guidelines w.e.f November 2016. As per the govt’s notification, all goods & services providers have to report to the IT department about high value cash transactions & cash receipts.

Under the new norms, cash receipts, purchase of shares, mutual funds, immovable property, term deposits, sale of foreign currency will have to be reported to the tax authorities in a prescribed format, which is Form 61A.

  • Immovable Property: The Registrar of properties will have to report purchase & sale of all immovable property exceeding Rs 30 Lakh to the Income Tax authorities.

  • Professionals: The Professionals will be required to inform the tax department of receipt of cash payment exceeding Rs 2 lakh for sale of any goods or services.

  • Cash Deposits in Banks: Banks will have to report cash deposits aggregating Rs 10 lakh or more in a financial year in one or more accounts (other than Current Account / Time Deposit) of a person.

  • Term Deposits in Banks:  Banks will have to report cash deposits aggregating Rs 10 lakh or more in a financial year in one or more Time Deposit accounts of a person (other than a time deposit made through renewal of another time deposit). These norms will also cover deposits and withdrawal made in Post Office Account.

  • Deposits in Current Accounts: Cash deposits or withdrawals aggregating to Rs 50 lakh or more in a financial year in one or more Current Account of a person will have to be reported by the bank to the I-T authorities.

  • Any cash payment of Rs 10 lakh or more in a financial year for purchase of bank drafts or pre-paid instrument issued by RBI will also be reported.

  • Investments in Financial Securities : A company has to report receipt of Rs 10 lakh or more from a person/an investor in a financial year for acquiring bonds, debentures, shares or mutual funds (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund).

  • Cash Deposits during 9th Nov to 30th Dec, 2016: Cash deposits during the period 09thNovember, 2016 to 30th December, 2016 aggregating to –

    • (i) Rs 12.5 Lakh or more, in one or more current account of a person (or)

    • (ii) Rs 2.5 Lakh or more, in one or more accounts (other than a current account) of a person.

In addition to the above list, quoting your PAN is now mandatory for many financial transactions. Based on this data also the IT department can track your financial transactions.

If you receive any notice by the IT department for any high value cash transaction, you can follow these steps to response to the IT department

Step 1: Log in to e-filing portal https://incometaxindiaefiling.gov.in. 

Step 2: If you are registered, fill in your details and click on the compliance tab. If not, register yourself and proceed.

Step 3: Under the Compliance tab click on “ Accounts with Cash Transaction” link. You may also find this option under “Quick Link”. This will direct you to “ Bank/ Financial Account(s) with substantial Cash Transaction page.

Step 4: Check the details of the bank account related to you.

Step 5: Please select your reason amongst the one given in the page and make the submission. Keep the acknowledgement for your record.

Step 6: In case you make a mistake in submission of response, you may further revise it by login to e-filing portal.

In case you are having trouble we can help you. Please contact us on +91 7022251221, 080-40463170 or drop in an email at info@unicomply.com

Conversion from Public to Private Company




The Companies Act, 2013 was expected to simplify the provisions but on the contrary it brought lot of restrictions on doing business. Therefore, many public companies are converting themselves into private limited company.


Legal Provisions related to Conversion of Public Company into Private Company are given in Section 18 and 14 of the Companies Act, 2013 read with Rule 33 of Companies (Incorporation) Rules, 2014.

As per Section 13 and Section 14 of the Companies Act 2013 read with Rule 33 of Companies (Incorporation) Rules, 2014. A public company can be converted into the private company only after obtaining its shareholders approval by way of passing of special resolution in general meeting.


[As per Second Proviso of Section 14(1)]

For Conversion of Public Company into Private Limited Company foremost requirement is Alteration in Article of Association of Company. According to the Act alteration of article of association of public company cannot be done without previous approval of Tribunal.


But as per General Circular No. 18/2014 dated June 11, 2014 “For Conversion of Public Company into Private Limited Company the corresponding provisions of Companies Act, 1956 shall remain in force till corresponding provisions of Companies Act, 2013 are notified. Power of Central Government will be vest into the ROC.




In accordance with the provisions of section 173(3) of the Companies Act, 2013, for convening a meeting of the Board of Directors.

Main agenda for this Board meeting would be:



1. Pass a board resolution to get in principal approval of Directors for conversion of a public company into a private company by altering the AOA subject to the approval of Central Government;

2. Fix date, time and place for holding Extraordinary General meeting (EGM) to get approval of shareholders, by way of Special Resolution, for conversion of a public company into a private company.

3. To approve notice of EGM along with Agenda and Explanatory Statement to be annexed to the notice of General Meeting as per section 102(1) of the Companies Act, 2013;

4. To authorize the Director or Company Secretary to issue Notice of the Extra-Ordinary General meeting (EGM) as approved by the board.



1.  Provisions of the Section 101 of the Companies Act 2013 provides for issue of notice of EGM in writing to below mentions at least 21 days before the actual date of the EGM :

·   All the Directors.

·  Members

·  Auditors of Company




1.   Check the Quorum.

2.  Check whether auditor is present, if not. Then Leave of absence is Granted or Not. (As per Section- 146).

3. Pass Special Resolution.[Section-114(2)] to get shareholders’ approval for Conversion of Public Limited Company into Private Limited Company along with alteration in articles of association.

4.       Approval of Alteration in MOA & AOA.



For alteration in Article of Association for conversion of public company in Private Company under section 14, few E-forms will be filed with concerned Registrar of Companies at different stages as per the details given below

1.        E- Form MGT.14

As per Section 117(3) Copy of this special resolution is required to be filed with concerned ROC through filing of form MGT.14 within 30 days of passing special resolution in the EGM.



i. Notice of EGM along with copy of explanatory statement under section 102;

ii. Certified True copy of Special Resolution;

iii. Altered memorandum of association;

iv. Altered Articles of association

v. Certified True copy of Board Resolution may be attached as an optional attachment.

It is relevant to note that first you have to file form MGT.14 as SRN No. of form MGT.14 will be used in form INC.27

Accordingly, an Application for conversion of a public company into a private company is required to be filed in e-Form INC.27 to the ROC concerned, with all the necessary annexure and with prescribed fee.



i.      It is mandatory to attach Minutes of the member’s meeting where approval was given for conversion and altered articles of association.

ii.      No need to attach copy of order of Competent Authority.

iii.    Altered Articles of Association.

iv.    Other information if any can be provided as an optional attachment


 Some ROC require following further documents in INC-27.

i.   Affidavit from Director or MD or WTD stating following:

ü.  That Company was never listed with any stock exchange, never it accepted any deposit;

üi.  Letter of no objection have been obtained from all creditors   /Debentures holders.

iv.  No demand from Sales Tax or Income Tax or Excise is pending

v.   Copy of certificate of Commencement of Business.

vi.  Certified list of Creditors of the Company as on date of EGM.

iv.  Certified list of Members of the Company as on date of EGM.

v.   Proof of filing of statutory report with ROC.

vi.  List of cases pending before any court of Law where company is a party.

If ROC satisfied then ROC shall close the former registration and issue fresh certificate of incorporation, after registering the documents submitted for change in class of company.




Mandatory Registers Required under Companies Act, 2013



From Incorporation to Liquidation for any Company, various Registers are required to be prepared and updated from time to time, as it is a statutory Requirement as prescribed under the provisions of Companies Act, 2013 and the relevant rules made thereunder.

There are Different Registers to be maintained. Not all the registers are needed to be maintained, however it depends upon the nature of Company (Whether it is Private Company, Public Unlisted Company or Public Listed Company, One-Person Company).

List of Registers as per Companies Act, 2013

Sr. No Relevant Sections & Rules Register Name
1. Sec. 46(3) & Rule 6(3) of Companies (Share Capital and Debenture rules) 2014


Register of Renewed and Duplicate Share Certificate
2. Section 54 and Rule 8(14) of the Companies (Share Capital and Debentures) Rules 2014


Register of Sweat Equity Shares
3. Section 62 (1)(b) and Rule 12(10) the Companies (Share Capital and

Debentures) Rules 2014


Register of Employee Stock Options
4. Section 68(9) and Rule 17 (12) of the Companies (Share Capital and Debentures) Rules 2014


Register of shares or other securities bought-back
5. section 85 and Rule 10(1) of the Companies (Registration of Charges) Rules, 2014


Register of charges
6. section186(9) & rule 12(1) Register of loans, guarantee, security and acquisition made by the company


7. Section 187(3) and Rule 14(1) Register of investments not held in its own name by the company


8. Section 189(1) and Rule 16(1) Register of contracts with related party and contracts and Bodies etc. in which directors are interested


9. Section 88 (1)(a) and Rule 3(1) of the Companies (Management and Administration) Rules, 2014


Register of Members
10. Section 88 (1)(b) and(c) and Rule 4 of the Companies (Management and Administration) Rules, 2014


Register of debenture holders/ other securities holders






MCA Update



Amendment in Incorporation Rules dated 27.07.2016

Following are the major amendments mentioned in the Notification:

*1. Subscription Sheet of Incorporation*
Now, the type written or printed particulars of the subscribers and witnesses shall be allowed as if it is written by the subscriber and witness so long as they append his or her signature or thumb impression.


*2. Proofs of Subscribers*
In case the subscriber is already holding a valid DIN, and the particulars provided therein have been updated as on the date of application, and the declaration to this effect is given in the application, the proof of identity and residence need not be attached.


*3. Form INC-10 is omitted. * 
Now, no need to attach Form INC-10 in Incorporation application.


*4. Publication of name by Company*
Every company which has a website, shall disclose/publish its name, address of its registered office, CIN, etc. on the landing/home page of the said website.


*5. Shifting of RO from One state to another*

  1. NOC from RBI to be attached with Form INC-23, in case Company is registered NBFC.
    b. In case of Listed Company, now no need to serve notice along with copy of application to SEBI.


FINISH filing your old Income Tax Returns by August 31 2016

Are you sure your IT Return has been filed and processed?  Merely uploading the IT return does not finish the process.  You also need to file acknowledgements of tax returns to complete the process or else the return submission is not complete.

Don’t worry, the Government has permitted all tax payers to regularise their returns for the last six assessment years by 31 August 2016 to complete the process.

The Central Board of Direct Taxes (CBDT) has given a final opportunity to taxpayers to complete pending tax returns for the previous six assessment years. This is being done to regularise income tax returns that have remained pending because the ITR-V (acknowledgement) was not received by the Central Processing Cell (CPC).

Returns for AYs from 2009-10 to 2014-15, which were uploaded electronically by the taxpayer within the time allowed but have remained incomplete due to non-submission of ITR-V for verification, will also be allowed for verification through an Electronic Verification Code (EVC).

It is mandatory for all the taxpayers who have annual total income of more than Rs.5 lakh or have a refund claim, to e-file their ITR. The next step is to verify the ITR-V using any of the following methods, and this needs to be done within 120 days from filing of the return:

  • Verification using a digital signature;
  • Sending a signed form ITR-V to tax department’s Centralized Processing Centre (CPC).
  • E-verification of ITR-V using a one time password (OTP), either through Aadhaar or Internet banking (introduced from AY 2015-16).

While most of the people generally file their returns, many forget to complete the last part of the process – verifying the ITR-V, which technically means that the return has not been filed.

Where tax filers have not submitted their ITR-V within the stipulated time period of 120 days, the return is not considered as Valid. However, the same can now be regularised for the returns from AY 2009-10 to AY 2014-15.

An intimation is generally received from the income tax department if your ITR is pending because of non-submission of ITR-V. Nonetheless, you can also find out the status yourself by logging on to the tax department’s website: https://incometaxindiaefiling.gov.in.



Under services, you will find an option ‘ITR-V Receipt Status’. Enter your Permanent Account Number (PAN) and AY or e-Filing Acknowledgement Number. If ITR-V has not been received within the prescribed time, its status will not be displayed, which will mean that you need to take steps to complete the filing process.

Completing verification

You can either complete the verification process through any of the methods specified above.

Interest on refunds due

If there is a pending refund, interest on it will be calculated based on the rules under section 244(A)2 of the Act. However, if your ITR-V is pending for processing due to your mistake, interest on due refunds will be calculated only till the date of filing returns.

Please make sure you use this opportunity and regularise your Income Tax Returns. This is the final opportunity provided by the Government. If not done, it will be treated as though the return was never filed – aka – does not exist. Penalty of Rs.5,000 may also be levied apart from interest on pending taxes, and other penal actions can also be taken.

We strongly recommend you to check the status of your ITR – V on the tax department’s website and do the needful as early as possible. This is a good opportunity to get your tax filings in order.

Please note – the Government has only permitted to file the ITR-V till August 31, 2016. It does not mean that you can proceed to file your Income Tax Return now, if you have not filed earlier.

Ensure you check your e-Filed Returns status to know what is the status of the Income Tax Returns filed. Below is the sample of how the screen may look for the different years that you have filed your returns.


If status is showing return uploaded, it means the return is pending for verification. You can click the green box just above the return status (which says “Click here to view your returns pending for e-verification”) and then e-verify to complete the process immediately.


Should you require any clarification or assistance, please feel free to mail on info@unicomply.com

File your Income Tax Returns now – Do not delay it –Reasons & explanation

After every financial year ends, it is a good process to reflect upon the past year and make future outlook better.  Also, it is a time to set right all your financial details and file your income tax return (without waiting for the due date to reach close).

Many people procrastinate on this process, waiting until close to the July 31stdeadline to get going (and many people fail to do it even ater that, until and unless prompted by external factors like IT notice on non-filing, visa requirement etc).

There are many reasons why it’s a bad idea to wait to file your income tax returns.The intelligent and smart ones get going as soon as possible, and they reap the rewards of early filing.

If you are stuck in thought on whether you should take the steps to go ahead and file your income tax return or think of doing it later (cos you are busy busy busy), here are some negatives of procrastinating and a few reasons why it helps to file it soon…

  1. Mistakes often happen if you rush at the end moment

Think of the times that you have had to rush in doing some work and you have either messed it or not done your best with it. When you wait until the last minute, you will be working under pressure. You’ll be rushing to finish things, and you won’t have the time to go back and recheck or review the things that you need to recheck or review.

This leads to an increase in probability that you may make a mistake on your taxes.  You may forget to enter some important details, fail to disclose income, avail deduction etc.

If you start earlier, you will have a chance to go back, reflect and look at your Income Tax Computation workings with a fresh mind again.  You will ensure that it is all done properly & filed.

  1. Your Tax refund is your right – Why delay?

The Income Tax Returns can be filed by you as soon as the ITR Forms are available (mostly May starting).  The earlier the IT Filing is done, the earlier the returns can be processed by the IT Department.

People who wait to file till the deadline can have to wait for the refund as the processing may take longer (due to bulk inflow of IT returns).  Why delay filing when you can get your tax refund at the earliest?

  1. Opportunity loss as your money (refund) is not with you

In continuation of the last point, when you file your returns early, you get your tax refund sooner and you can use the same to make more wealth. Whether you putthat money in stock markets (risk and returns, both higher) or even keep it in the bank (where it grows a measly 4% to 7%), you have a chance to put that money to work for you.

The longer you wait, the longer you are lending your money to the Government of India without receiving any return. While impact may look smaller to you, this is a bad move in the long term, depriving you of the benefits of compound interest. Even if you’re not a stock market investor, it is useful to have the refund amount in your bank, as you can spend it on something you want or just keep it for safety and security.

  1. Professional help may be limited if filing returns closer to deadlines

A professional may give you more time when you approach him/her to file your returns.  Depending upon how complex your tax filing happens to be, you may benefit from more time with a professional who knows precisely what he/she is doing. If you wait until the last minute, you will have a difficultyin getting time with your accountant or tax expert.

If you start earlier, the professional can go through your data in order to ensure that you’ve availed all the possible deductions, exemptions, etc. This time can save you big money (and your time as well) over the long run.

  1. Waiting longer increases your chances of being noted in default lists

The IT department, with its increased technological push, is now starting to send default notices to people/ corporates/ PAN holders who have not filed their return of income.  The IT department can get hold of your transactions made (as PAN is now increasingly being used in various domains) and therefore, if IT return has not been filed, you may get a notice seeking explanation.

It is always wise to get a jump start on your tax filing. There is no reason to follow the crowd and waiting until the end of July 31 to file. The earlier you file, the better your chances of avoiding mistakes that could potentially cost you a lot of money in interest and penalties down the line. On top of that, you’ll have one less worry as you can concentrate to increase your wealth in current financial year.


Krishi Kalyan Cess – Have you treated it correctly? Applicability and impact on pending invoices/ payments as on June 1, 2016

Krishi Kalyan Cess 1 Krishi Kalyan Cess 5

As you are aware that the effective rate of service tax has increased from 14.5% to 15% with the introduction of KrishiKalyan Cess (“KKC”) of 0.5% with effect from June 1, 2016.  In this regard, it is to be noted that if the payment is received on or after June 1, 2016, then the service provider will be liable to pay KKC to the Government as per Point of Taxation Rules, 2011.

The applicability of KKC, being a new levy for the first time on services, is governed as per Rule 5 of Point of Taxation Rule, 2011.  The explanation thereto. Rule 5 of Point of Taxation Rules, 2011 is as under:-

“Where a service is taxed for the first time, then –

  1. a) no tax shall be payable to the extent the invoice has been issued and the payment received against such invoice before such service became taxable;
  1. b) no tax shall be payable if the payment has been received before the service becomes taxable and invoice has been issued within fourteen days of the date when the service is taxed for the first time.

Explanation 1 – This rule shall apply mutatis mutandis in case of new levy on services.

Explanation 2 – New levy or tax shall be payable on all the cases other than specified above.”

Krishi Kalyan Cess 2 Krishi Kalyan Cess 3

In lights of the above applicable provisions of the law and explanation thereto, any invoice which has been issued prior to 01-June-2016 for which the payment are made on or after 01-June-2016 shall attract the new levy KKC.

Krishi Kalyan Cess 4To illustrate, if an invoice is issued on May 30, 2016 with a service tax rate of 14.5% and the payment is received on June 2, 2016, then the service provider would be liable to pay KKC to the Government i.e. the effective rate would be 15%.  He will be required to either collect it from his customer or pay from his pocket.

We hereby request and advise you to make the payment on or before 31-May-2016 against invoice already issued. Without prejudice to the above, in the event, wherein, any invoice which remains outstanding as on 31-May-2016, it is necessary that an additional invoice be issued for levy of new tax KKC on such outstanding amount.

It may be further noted that the additional levy of KKC on such outstanding amount shall be eligible for CENVAT credit.

It is to be noted that if such payment is not made, then the service provider will be liable to pay interest and penalty on KKC not deposited based on the above provision.

In case of any clarifications you may contact us on info@unicomply.com or on +91-70222-51221.

Article Credit – CA Nitin Nahar & CA Mohit Bajaj

Are u a Start Up?????

The time Narendra modi, the Prime minister had announced the Start up India plan on 16th January, 2016 there has been buzz around everywhere specially amongst youths and entrepreneurs.

The main ideology behind this is to promote bank financing for start-up ventures to boost entrepreneurship and encourage Start-ups with jobs creation. The Start-up India initiative is also aimed at promoting entrepreneurship among SCs/STs & women communities.

Still the main question which arises in the minds of entrepreneurs is whether there businesses are eligible for schemes and benefits under Start up India plan????

If you are the one searching for the same query, then here lies the answer of your questions.

For a startup to be recognized as one, you must fall into these criteria as mentioned below:

  1. It must be an entity registered/incorporated as a:
    Private Limited Company under the Companies Act, 2013; or
    Registered Partnership firm under the Indian Partnership Act, 1932; or
    c. Limited Liability Partnership under the Limited Liability Partnership Act, 2008.
  2. Five years must not have elapsed from the date of incorporation/registration.
  3. Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25 crore.
  4. Startup must be working towards innovation, development, deployment or commercialisation of new products, processes or services driven by technology or intellectual property.
  5. The Startup must aim to develop and commercialise:
    a) a new product or service or process; or
    b) a significantly improved existing product or service or process that will create or add value for customers or workflow.
  6. The Startup must not merely be engaged in:
    developing products or services or processes which do not have potential for commercialisation; or
    undifferentiated products or services or processes; or
    c. products or services or processes with no or limited incremental value for customers or workflow
  7. The Startup must not be formed by splitting up, or reconstruction, of a business already in existence.
  8. The Startup has obtained certification from the Inter-Ministerial Board, setup by DIPP(Department of Industrial Policy and Promotion)  to validate the innovative nature of the business, and
  9. be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an incubator established in a post-graduate college in India; or
  10. be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation; or
  11. be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an incubator recognized by GoI; or
  12. be funded by an Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with SEBI* that endorses innovative nature of the business; or
  13. be funded by the Government of India as part of any specified scheme to promote innovation; or
  14. have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.

* DIPP may publish a ‘negative’ list of funds which are not eligible for this initiative.

Here’s a quick analysis of the eligibility criteria: