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Module: General Practice

Q89: Regarding the "Start-up India" initiative, identify the INCORRECT statement:

A
The "Fund of Funds for Startups" is managed by SIDBI.
B
Startups can avail a tax holiday for 3 consecutive years out of the first 10 years.
C
To qualify as a "Startup," the entity's turnover must not exceed ₹500 crore in any previous year.
D
The scheme allows self-certification for compliance under 9 labor and environmental laws.
✅ Correct Answer: C
To be recognized as a "Startup" by DPIIT, the turnover must NOT exceed ₹100 Crore.
The limit is ₹100 Crore, not ₹500 Crore.
The ₹500 Crore limit applies to the definition of a "Medium Enterprise" under MSME norms (since April 2025), but the specific "Startup" tag for tax benefits is capped at ₹100 Crore turnover.
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