FAQ & Insights — REXERA Financial Services
NEWS
• K N Metal Secured Public Funding Of ₹20 Lakhs • SkillSync Employment Services Private Limited Secured Public Funding Of ₹2.4 Lakhs • DPIIT & 80IAC Tax Exemption Approved For 15+ Startups This Month • ₹500+ Cr Total Capital Structured For Corporate & Startup Clients Across India • New CGTMSE Collateral-Free Lending Limits Updated For MSMEs • K N Metal Secured Public Funding Of ₹20 Lakhs • SkillSync Employment Services Private Limited Secured Public Funding Of ₹2.4 Lakhs • DPIIT & 80IAC Tax Exemption Approved For 15+ Startups This Month • ₹500+ Cr Total Capital Structured For Corporate & Startup Clients Across India • New CGTMSE Collateral-Free Lending Limits Updated For MSMEs
KNOWLEDGE & CLARITY HUB

Frequently Asked Questions

Clear, transparent answers regarding government subsidies, business loans, CGTMSE coverage, DPIIT tax holidays, and corporate compliance.

Q01

How does CGTMSE collateral-free lending work, and what are the limits?

Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), eligible manufacturing and service enterprises can secure term loans and working capital facilities up to ₹5 Crore without pledging immovable property or third-party guarantees. The trust provides guarantee coverage ranging from 75% to 85% to the lending bank or financial institution. Rexera structures the complete Detailed Project Report (DPR), CMA data, and financial justifications to align with bank underwriting mandates.
Q02

What is the capital subsidy available under PMEGP for new manufacturing setups?

The Prime Minister’s Employment Generation Programme (PMEGP) offers back-ended capital subsidies up to 35% for project costs up to ₹50 Lakhs in manufacturing and ₹20 Lakhs in service units. Rural units and special category beneficiaries (SC, ST, Women, Minorities) receive the highest 35% subsidy rate, while urban general applicants receive 15%. Rexera manages the complete online application, agency coordination with KVIC/DIC, and bank sanction facilitation.
Q03

How can our startup obtain the Section 80-IAC 3-year 100% Tax Exemption?

To qualify for Section 80-IAC of the Income Tax Act, the startup must: (1) be a DPIIT-recognized Private Limited company or LLP incorporated between April 1, 2016 and March 31, 2025 (or extended date), (2) possess an innovative product, service, or scalable business model with high employment generation potential, and (3) obtain approval from the Inter-Ministerial Board (IMB). Once approved, the company pays 0% corporate income tax on profits for any 3 consecutive assessment years within its first 10 years. Rexera prepares the complete technical patent/IP dossier, financial scalability pitch deck, and board representation.
Q04

What minimum vintage and turnover are required for unsecured business loans?

Generally, institutional lenders require an operational vintage of at least 2 to 3 years and annual turnover exceeding ₹40 Lakhs with clean GST filing history. Promoter CIBIL scores above 700 and positive net banking cash flows significantly accelerate approvals. For eligible borrowers, loans from ₹10 Lakhs to ₹2 Crore can be sanctioned and disbursed within 5 to 7 business days without collateral.
Q05

What benefits does the Gujarat Industrial Policy offer to manufacturing MSMEs?

The Gujarat Industrial Policy provides extensive incentives for MSMEs, including: (1) Capital investment subsidy of 10% to 25% on eligible plant and machinery, (2) Interest subvention of 5% to 7% on term loans for 5 to 7 years, (3) Power tariff concessions, (4) Assistance for ERP implementation and quality certifications (ZED, ISO, CE), and (5) Patent/technology acquisition reimbursement up to 75%. Rexera’s Ahmedabad and Vadodara desks provide on-ground liaison with District Industries Centres (DIC).
Q06

What annual statutory filings are mandatory for Private Limited companies?

Every registered Private Limited company must fulfill: (1) MCA Annual Return (Form MGT-7/7A) and Financial Statements (Form AOC-4), (2) Director KYC (DIR-3 KYC) annually, (3) Corporate Income Tax Return (ITR-6) with Section 44AB Tax Audit report (if applicable), (4) Monthly/Quarterly GST filings (GSTR-1, GSTR-3B) and Annual Reconciliation (GSTR-9/9C), and (5) Periodic TDS returns (24Q, 26Q). Rexera manages the entire compliance calendar to ensure zero penalty liabilities.
Q07

How does Rexera Financial Services charge for advisory and funding assignments?

We operate on a transparent, milestone-driven fee model. Initial eligibility assessment and scheme matching are conducted without upfront commitment. For complex CMA modeling, DPR drafting, and institutional debt structuring, professional retainer and success fee structures are clearly agreed upon in our formal Letter of Engagement. All official payments are accepted exclusively in the company bank account under REXERA FINANCIAL SERVICES PRIVATE LIMITED.
Q08

What is Angel Tax Exemption under Section 56(2)(viib) for startups?

Section 56(2)(viib) previously taxed the share premium received by unlisted companies from resident investors exceeding Fair Market Value (FMV). With DPIIT Startup Recognition and Form 2 declaration, recognized startups are completely exempt from angel tax up to an aggregate paid-up share capital and share premium of ₹25 Crore. Moreover, recent Union Budgets have fully abolished angel tax across classes of investors, enhancing the ease of capital raising.
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