Question: I would like to know what are the businesses in India which has income tax Exemption?
Answer: The business related to agricultural product and products attracting rural welfare and environment, because these businesses are helped by governments as well as international organizations.
Now the other aspects of the type of business we discussed above are that whole profit derived from the above business is 100% exempt from taxation.
Even you can carry forward the loss incurred during the year to the following years infinitely, there is no limit as to how many years you can carry forward your loss.
So that is good on one part that if during the initial year you business do not earn much or incur loss then you can set off the loss and carry forward the loss to subsequent assessment year.
Second benefit that government has given is a venture can consider the entire capital expenditure incurred as revenue expenditure and claim in his profit & loss account for income tax purpose, which is nice thing actually thereby you can save tax amount on your profit to the extent of such capital expenditure.
The above kind of business are too less and there is so much opportunities and scope for new ventures like you. The above benefits will definitely gain your business to grow and expand in future, initially you may face some difficulties in getting returns but in long run it will really prove to be beneficial.
If you have any questions regarding to this, you can ask your questions here.