Government eases process for startups to seek tax exemption on angel fund investments – The Economic Times
The government has eased the procedure for startups to seek income tax exemption on investments from angel funds as part of efforts to address concerns of budding entrepreneurs, official sources said.
Various startup founders have recently claimed of receiving notices under Section 56(2) (viib) of the Income Tax Act from the I-T department to pay taxes on angel funds raised by them.
“Commerce and Industry Minister Suresh Prabhu has approved a notification pertaining to this clause to make allowances for angel investors. A formal notification to this effect would be issued soon by the DIPP,” sources said.
To seek the exemption, a startup will apply, with all the documents, to the department of industrial policy and promotion (DIPP). The application of the recognised startup shall be moved by the department to the Central Board of Direct Taxes (CBDT) necessary documents.
“CBDT has been mandated to grant exemption approval to the startup for the purposes of this clause or they can decline to grant such approval within a period of 45 days from the date of receipt of application from the DIPP,” they said.
Earlier procedure of applying to an inter ministerial board of certification for approval under this clause has now been done away with.
“Application procedure has been simplified by making application to CBDT through DIPP,” they added.
The earlier requirement of startup to submit report from merchant banker specifying the fair market value of shares has also been removed.
As per the revised procedure, a startup which is recognised by the DIPP would be eligible to seek exemptions, subject to certain conditions.
Startups will have to provide account details and return of income for last three years. Similarly, investors would also have to give its net worth details and return of income.
Very good post! We are linking to this particularly
great content on our site. Keep up the great writing.
This piece of writing gives clear idea in favor
of the new users of blogging, that actually how to do blogging.
Thanks , I have recently been looking for info about this
subject for a while and yours is the greatest I’ve discovered till now.
However, what about the conclusion? Are you positive in regards to the
supply?
Hello mates, its fantastic piece of writing about educationand completely explained,
keep it up all the time.
Pretty! This was an incredibly wonderful article. Thank
you for supplying this information.
My spouse and I absolutely love your blog and find most of your post’s to
be what precisely I’m looking for. can you offer guest writers to
write content for you? I wouldn’t mind composing a post or elaborating on a number of the subjects you write in relation to here.
Again, awesome site!
I think the admin of this web page is genuinely working hard for his web page, since here every information is quality based stuff.
hey there and thank you for your info – I have definitely picked up anything new from right here.
I did however expertise several technical points using this website, since I experienced to reload the
website a lot of times previous to I could
get it to load correctly. I had been wondering if your web hosting is OK?
Not that I’m complaining, but sluggish loading instances times
will sometimes affect your placement in google and could damage your high-quality score if ads and marketing with
Adwords. Anyway I am adding this RSS to my e-mail and could look
out for much more of your respective interesting content. Ensure that you update
this again soon.
Thanks for finally writing about >Government eases process for startups to seek tax exemption on angel fund investments
– The Economic Times | Intellex Consulting <Loved it!
Every weekend i used to visit this site, for the reason that i want enjoyment, as this this web page conations really good funny stuff too.
Good day! I know this is somewhat off topic but I was wondering
which blog platform are you using for this website?
I’m getting sick and tired of WordPress because I’ve had problems with hackers
and I’m looking at alternatives for another platform.
I would be awesome if you could point me in the direction of a good platform.
These are truly enormous ideas in regarding blogging.
You have touched some good points here. Any
way keep up wrinting.