The bell has rung! The Union Budget 2019 has brought a bag full of incentives for startup industry. These incentives will supposedly reduce the regulators and tax compliance burden on the budding enterprises. With a view to encourage more startups, the government has initiated a special arrangement for resolving pending assessments of income tax cases.
NASSCOM Executive Council member Kunal Bahl quotes that “Doing away with the scrutiny of valuation of documentation on angel tax is an excellent step that will help facilitate funding… With this Budget, startups can expect lesser regulatory requirement, besides reducing their tax compliance burden.”
Looking at the steep rise in the number of startups in Tier II and Tier III cities, the government plans to attract more foreign investment inflows. The Finance Minister, Nirmala Sitaraman states that investors who file requisite declarations and adequate information in their returns will be barred from scrutiny in respect of valuations of share premiums and resolve the ‘angel tax’ issue. These new regulations around angel tax will propel the startup ecosystem and support the founders develop their businesses.
Read more to know what Tanuj Shori, Founder and CEO of Square Yards says about this move…
Published by: The Economics Times & YOURSTORY
Date: 07/07/2019
