Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English

EXIT Poll Results

Detailed Exit Poll Results
News18 » Business
2-min read

Budget Initiatives for Start-Ups to Significantly Improve Flow of Funds, Encourage Entrepreneurs: DPIIT Secretary

In February, the DPIIT and the CBDT gave a major relief to budding entrepreneurs by relaxing the definition of start-ups and allowing them to avail full angel tax concession on investments up to Rs 25 crore.

PTI

Updated:July 7, 2019, 1:08 PM IST
facebookTwitterskypewhatsapp
Budget Initiatives for Start-Ups to Significantly Improve Flow of Funds, Encourage Entrepreneurs: DPIIT Secretary
Image for representation (Photo: Reuters)

New Delhi: The initiatives announced by the government for start-ups in the Union Budget would significantly improve flow of funds and encourage budding entrepreneurs, a top official said. Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Ramesh Abhishek said the Budget proposals have also resolved angel tax issues of start-ups.

"Major tax reforms have been announced for start-ups that will significantly improve flow of funds to them and address many tax related issues they have been facing," Abhishek told PTI.

The Budget has proposed special administrative arrangements to be made by the Central Board of Direct Taxes (CBDT) for resolving pending tax assessments of start-ups and redressal of their grievances. The government will ensure that no inquiry or verification in pending cases can be carried out by the assessing officer without obtaining approval of his supervisory officer.

These measures, he said, would help budding entrepreneurs focus more on their businesses and not on regulatory matters. "Overall, it is seen that the Budget has addressed important issues such as improving the flow of funds and credit growth," the secretary said.

In February, the DPIIT and the CBDT gave a major relief to budding entrepreneurs by relaxing the definition of start-ups and allowing them to avail full angel tax concession on investments up to Rs 25 crore.

This was done as several start-ups claimed to have received angel tax notices, impacting their businesses. Various start-ups have raised concerns on notices sent to them under the section 56(2)(viib) of Income Tax Act, 1961 to pay taxes on angel funds received by them.

Section 56(2)(viib) of the Income Tax Act provides that the amount raised by a start-up in excess of its fair market value would be deemed as income from other sources and would be taxed at 30 per cent.

Touted as an anti-abuse measure, this section was introduced in 2012. It is dubbed as angel tax due to its impact on investments made by angel investors in start-up ventures.

The Budget has also proposed tax incentives for the start-up community in terms of carry-forwarding losses and exemption of capital gains on sale of residential property for investment purpose.

Commenting on the Budget measures, S Vasudevan, Partner, Lakshmikumaran & Sridharan Attorneys said the proposals would have a positive impact on the community. "The most significant change introduced is the relaxation in the condition related to investment of capital gains from sale of residential property," he said.

The government launched the 'Startup India' initiative on January 16, 2016, to build a strong ecosystem for nurturing innovation and entrepreneurship. It also provided them with certain tax benefits and other incentives.

The DPITT has so far recognised 19,710 start-ups, with over 540 of them receiving exemption from angel tax.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 51.40 8.44
Reliance 1,416.35 1.42
Indiabulls Hsg 231.20 16.80
Zee Entertain 250.20 -5.39
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
HDFC AMC 2,882.20 6.11
Yes Bank 51.40 8.44
Indiabulls Hsg 231.50 17.42
Reliance 1,415.30 1.37
IRCTC 779.20 7.57
Top Gainers
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.28
Adani Ports 421.70 3.07
Grasim 746.50 3.03
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.31
Maruti Suzuki 7,318.15 2.74
Power Grid Corp 202.55 2.45
NTPC 121.00 2.02
Top Losers
Company Price Change %Gain
Zee Entertain 250.20 -5.39
Tata Motors 136.85 -1.90
Eicher Motors 20,275.90 -1.05
Bajaj Auto 3,087.05 -0.79
Hindalco 187.40 -0.74
Company Price Change %Gain
Tata Motors 136.70 -1.05
Bajaj Auto 3,087.75 -0.73
Bharti Airtel 383.25 -0.65
ICICI Bank 437.75 -0.64
Axis Bank 709.20 -0.19

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results