Tuesday, November 12, 2019

IT department exempts 120 startups form paying taxes on fund raised through angel investors

Must Read

Jharkhand polls for 81 constituencies from November 30 to December 20; counting on 23rd December

Addressing a press meeting today, Chief Election Commissioner Sunil Arora has announced the poll dates for Jharkhand Legislative assembly....

Congress forms six-member committee of AICC to review situation of NRC in Assam

In a bid to review the condition of Assam state after the implementation of the NRC exercise, Congress party...

Shiv Sena elects Eknath Shinde as party’s legislative leader; Sunil Prabhu appointed as chief whip of party

In a striking breakthrough, Shiv Sena elected senior minister Eknath Shinde as the party's legislative leader today. It has...

The Income Tax (IT) department has exempted 120 startups from paying taxes on capital raised from angel investors.

The intimation has been sent to the startups in the last few days under a new scheme launched in February 2019. With this income tax authorities ended a major issue faced by new startups due to a anti-evasion provision of Income Tax (IT) Act.

The new notification comes as a sigh of relief for those startups which were asked to share premium which was higher than their fair value. They can now use the new notification from the Central Board of Direct Taxes (CBDT) and can get the benefits of the exemption. And for those cases where assessments have been done and final tax demands are issued, the startups can produce the exemption certificates at the stage of appeals to a higher authority within the tax department.

As per sources, in March about 150 startups have applied for the ‘startup tag’ out of which 120 have got the tag and thus can enjoy the tax benefits and won’t need to pay taxes on funds raised through angel investors. While the remaining will soon get the benefits once their application is corrected and gets approval nod.

Under the new scheme, an entity considered as a startup is eligible for tax benefits (exemption) for up to 10 years from the date of incorporation, earlier it was seven years. The move is expected to encourage wealthy individuals to invest in startups, which receive capital at a premium on account of their innovative business model.

Some started with low physical valuation received large money from their respective angle investors which led startups under the IT department scanner.


Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

More discussions with NCP on support to Sena: Congress

New Delhi, Nov 11 (IANS) After the indecisive meeting of Congress interim President Sonia Gandhi with party leaders, including...

Congress release 19 candidate list for Jharkhand

New Delhi, Nov 11 (IANS) The Congress on Monday released another list of 19 candidates for the 81-member Jharkhand assembly, including wife of former...

Visva-Bharati unique blend of tradition and modernity: Kovind

Santiniketan (West Bengal), Nov 11 (IANS) Expressing his objection to allowing machines to gain predominance by relegating concerns of human well-being to the background,...

Reverse gear: Festive season fails to boost auto sales (Roundup)

New Delhi, Nov 11 (IANS) Despite the traditional up-tick in sales during the festive season, the slump in the domestic automobile sector continued unabated...

Kipchoge shortlisted for World Male Athlete of the Year

Nairobi, Nov 11 (IANS) Kenyan long-distance runner and reigning Olympic marathon champion Eliud Kipchoge has been shortlisted for the World Male Athlete of the...
- Advertisement -

More Articles Like This