[New Delhi]702 Startups Exempted From Taxation
Startups receiving investments from Ventures Capital Fund are exempt from taxation as per provision of Section 56, (2) (vii b) of Income Tax Act 1961 (Act). Angel Fund is sub category of Ventures Capital Fund under Category-I Alternative Investment Fund (AIF), hence, eligible for the same exemption.
Department of Revenue had earlier issued an advisory on 24th December, 2018 based on representations received from various startup companies that no coercive measures to recover the outstanding amount should be taken for startup companies
DPIIT accepts applications and declarations from Startups applying for Angel Tax Exemption and on the receipt of the same DPIIT forwards these applications to CBDT. As on 21st June, 2019 a total of 944 applications for Angel Tax Exemption have been received. Thirty-nine applications have been found to be incomplete, and 203 applications were repeat or modified applications. CBDT has exempted 702 startups under this provision.
This information was given by the Minister of Commerce and Industry, PiyushGoyal, in a written reply in the Lok Sabha today.
Tag: Indian Startups
702 Startups Exempted From Taxation
Modi Encourages Startups
[New Delhi]Modi Encourages Startups. He informed that his government has launched the Startup India Action Plan to promote budding entrepreneurs in the country. The plan is aimed at giving incentives such as tax holiday, inspector raj-free regime and capital gains tax exemption,
Prime Minister Narendra Modi said that the government is taking several steps to promote young entrepreneurs in the country, adding that startups are no longer confined to big cities.
Smaller towns and villages too are emerging as vibrant startup centres, the Prime Minister said while interacting with young entrepreneurs from across the country, including cities like Dehradun, Guwahati and Raipur
He also said that along with Make in India, Design in India too is important for startups
“Adequate capital, courage and connecting with people are required for excelling in the startup sector,” he said
Modi added that there was a time when startups meant only digital and technology innovation but now things are changing and we are seeing startups in various other fields, including agriculture
“We have started an Agriculture Grand Challenge. We invite more youngsters to ideate on how to transform our agriculture sector,” he added
“Our startups are growth engines. Today’s big companies were startups at some point. I urge the people of India to keep innovating,” he added
He also said that the youth in India is now creating jobs and the government is committed to harnessing the demographic dividend
Commenting on the issue of fund availability for startups, Modi said the government has created a Rs 10,000 crore Fund of Funds
He also said startups can sell their products to the government and it has eased public procurement norms for them
Chinese Smartphone Xiaomi to Invest Rs 6K-7K Cr in 100 Indian Startups
[Chandigarh]Chinese Smartphone Xiaomi to Invest Rs 6K-7K Cr in 100 Indian Startups
Chinese smartphone major Xiaomi today said it will invest Rs 6,000-7,000 crore in around 100 startups in India in the next five years to strengthen its hardware and software ecosystem.
As per Manu Kumar Jain, the Managing Director and vice-president of Xiaomi India,
“Till 2017 the net investment of the company was Rs 3,000 crore. In the next five years we will invest Rs 6,000 crore to Rs 7,000 crore in around 100 startups in India,”
The companies that the company is looking to invest in, are more in mobile software tech side which will help strengthen hardware and software ecosystem,
India is the first market outside of China, where Xiaomi has introduced its televisions. In India, Xiaomi currently sells smartphones, air purifiers and mobile accessories like power banks.
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