Like our Facebook Page

Early Times Newspaper Jammu, Leading Newspaper Jammu
Breaking News :   Essence of every religion is to enrich humanity: Rana | 'Time to switch off TV': How politicians reacted to exit polls 2019 | Beopar Mandal Udhampur protests against hike in tax at Ban Toll Plaza | Two centres set up for counting of votes in Jammu LS seat | Exit polls predict Modi magic in Maharashtra, Gujarat and Congress-ruled Hindi heartland states | BJP rules Karnataka, YSR Congress surprise in Andhra, DMK takes Tamil Nadu | This Baarat Headed To Vote First, Groom Led The Way | Ambitious' Navjot Singh Sidhu wants to become next Punjab CM: Amarinder Singh | BJP leader's killing: TIP will be conducted | Nirmal Singh's family continues construction near Army depot despite HC order: Officials | Nirmal Singh's family continues construction near Army depot despite HC order: Officials | Remote areas worst victims of govt apathy : Harsh | DC orders enquiry after pregnant woman denied ambulance for ‘shortage of fuel’ | Hit by biker, traffic inspector lands into hospital | 17-yr-old girl electrocuted to death in Bandipora | Curfew continues for fourth day in Bhaderwah | Food, call bell, phone: Cave PM Modi meditated in can be rented for Rs 990/day | Convoy day on Jammu-Srinagar highway, no civilian traffic movement today | BSF ASI injured at Poonch LoC | Muslin wraps with state-specific designs may replace blankets in AC coaches of Railways | EC goof-up in voter list: RJD leader Tejashwi Yadav's photo missing | Bihar CM Nitish Kumar suggests EC to reduce duration of Lok Sabha poll | PM Narendra Modi says did not ask for anything from god in Kedarnath | BYS organises special Yoga session for teachers, students | Strange! After 5 years BJP remembers Kashmir issue is a myth | Modi Govt creates history by making Pakistan close 'terror-shops' in POK | Road blockers to face penal action: DC Kishtwar | Problem of internally-displaced Kashmiri Hindus | Estates deptt caught on wrong foot | Air Vice Marshal meets Governor | After losing NAAC accreditation, KU denied Rs 150 Cr by MHRD | RO Jammu inspects counting centres; reviews security, other arrangements | Executive meet chaired by Geelani forgets slain Mirwaiz | Div Com Jammu stresses to expedite pace of work on Ring Road Project | No seat available even for Manmohan Singh | APMCC stages protest, seeks Governor intervention | BDO Sunderbani `swindles' Rs 3.06 lakhs of Panchayat elections | Pragya Thakur shows PM Modi in true colours: Soz | Workshop on child-abuse held at Chadoora | Police holds public interaction meet at Garan | AJKMSS holds general meeting | JMC organizes awareness camp on SWM | Madhu Paramhans delivers religious sermons | HSAFT organizes awareness programme | Batwal community celebrates Buddha Jayanti | International Nurses Day celebrated | Deepak Kapahi urges Guv to intervene to fix limit for e-way bill | Elderly woman killed, four injured in road accident | Patnitop cable car all set for launch next month | District Jammu Karate Championship organized | Workshop on Digital Education & SSD organized | JPS team participates in MUN | Pushp Vatika organizes spoon and lemon race competition | Spring Dales Kathua conferred "Transforming Education Award" | DMHS shines in 10th Class Board Exam | Auction of 2nd PPCPL teams held | 2 trainees of KC sports club selected for Asian championship | Cultural activist receives award of excellence | Pollution checking centres give manipulated certificates | Lack of infrastructure in colleges, hampers higher education | MGNREGA labourers up in arms against RDD | Stalker abducts CUJ's student, beats her mercilessly | Rape accused, accomplices held within eight hours: Police | HC rejects bail of rape accused | Terrorist involved in rifleman Aurangzeb's killing among four killed by security forces | Tehsildar Mendhar suspends 7 ITI employees | SIT constituted to probe Bhaderwah killing, curfew continues for third day | Appointment of Lokesh Jha as Chairman JKSERC welcomed | Fresh traffic resumes on National highway, vehicles to ply from Srinagar to Jammu | Training prog for counting staff held at Kargil | Tourism Deptt organizes Heritage Walk to Monastic complex Ambaran | Ganai reviews progress under Aspirational Districts Prog | PCCF visits GMC to enquire health of injured forest Guard | JKPM president meets Advisor K Vijay Kumar | BJP warns NC, PDP to refrain from vote bank politics in Bhaderwah-Kishtwar | Secretary APD chairs high level meeting to discuss Action Plan under PMKSY | State admin orders proper maintenance of Jammu-Srinagar highway | SDH Mandi: Where patients are sent to specific lab, medical stores | 100 illegal structures removed amid curfew in Bhaderwah | Post of Asstt Prof Sanskrit in JU: HC quashes re-advt | Show record of 5-yr water discharge: HC to I&FC deptt | Street lights, urinals non functional, Kishtwar MC in deep slumber | DMEF appeals Govt to frame policy to tackle unemployment crises in state | BJP MLAs responsible for Bhaderwah incidents: Mula Ram | Kishtwar observes complete shutdown over killing | Bovine smuggling bids foiled, animals rescued, accused arrested | Youth electrocuted to death in Poonch | Sustained campaign for registration under PM-SYM launched | 80 bovine animals rescued in major smuggling bid | Multiple bovine smuggling bids foiled by police | Police arrest 2 drug peddlers | 69 Kg Poppy straw recovered, narcotic smuggler arrested | Police recover 370 tablets of TRM-spas, 2 arrested | Drug peddler arrested, 170 number of intoxicant capsules recovered | Something wrong in Doda and Kishtwar | BOI posts Profit in 4th quarter despite several challenges | Back Issues  
news details
Govt relaxes norms for startups, raises investment limit for availing angel tax concession
2/19/2019 11:17:25 PM


New Delhi, Feb 19: In a major boost to budding entrepreneurs, the government Tuesday raised the investment limit for angel tax exemption to Rs 25 crore and extended the period of availing benefits to 10 years for startups.
Earlier, the investment limit for a startup to seek exemption under section 56(2)(viib) of Income Tax Act, 1961 was Rs 10 crore and they were permitted to avail the benefits for seven years.
According to the notification issued by the Department for Promotion of Industry and Internal Trade (DPIIT), an entity would be considered as a startup up to a turnover of Rs 100 crore as against the earlier limit of Rs 25 crore.
"Today we have issued notification which will bring in lot of welcome changes. It is a great movement forward. Startups are innovators and job creators and we would like to support it fully. Taxation issues cropped up. We took up the issues with line ministries," Commerce and Industry Minister Suresh Prabhu told reporters here.
In order to avail the exemption, a startup will be required to submit a self-declaration about the use of the raised amount to the DPIIT, which will be forwarded to the Central Board of Direct Taxes (CBDT).
"Startup shall file a duly signed declaration to DPIIT for availing exemption because it will ensure that legitimate entities gets this," he said.
With regard to the tax demands raised by the CBDT, the board said that the field formations have been advised to expeditiously clear the cases.
The development assumes significance as several startups have claimed receiving angel tax notices, impacting their businesses. Notices sent to startups under section 56(2)(viib) of the Income Tax Act demanded taxes on angel funds received by them.
S Vasudevan, Partner, Lakshmikumaran & Sridharan Attorneys, said that "the stated exemptions may provide much needed relief to the relatively larger sized start-ups, having turnover up to Rs 100 crore, who may have been required to pay tax on premiums received on share subscription".
It was also clarified that investments made by friends, or family members or promoters will be exempted up to Rs 25 crore.
The minister said that the Rs 25 crore limit will not include "the amount that is coming from alternate investment funds or eligible listed companies. So even if you are Rs 25 crore plus, you continue to enjoy the benefit".
He added that startups are eligible for exemption under Section 56(2)(viib) if it is a private limited company recognised by DPIIT and not investing in certain assets.
Those assets include investments in real estate; loans and advances; capital contribution made to any other entity; buying shares and securities; a motor vehicle, aircraft, yacht or any other mode of transport exceeding Rs 10 lakh; and jewellary.
However, the exclusions would not cover those startups who are in that particular sector and holding the specified products as stock in trade.
Elaborating on the exemptions, DPIIT Secretary Ramesh Abhishek said that angel investors who were investing less than Rs 5 crore were getting taxed and "by exempting investments up to Rs 25 crore, any investments from any investor, we have gone far beyond the angel investment issue".
The relaxation will help large number of startups, he said adding earlier mainly bio-tech startups used to avail the benefit.
"We have also added that all investments made by listed companies, whose networth is Rs 100 crore or turnover is Rs 250 crore and whose shares are frequently traded as per SEBI regulations, they can make investments into eligible startups, without any limit," he said.
So far there are over 16,000 recognised startups. To get recognition, a startup have to upload certificate of incorporation and fill up certain details.
"For new startup, we will make a provision in the registration process itself," he said, adding startup register under these provisions or any of the previous notifications, everyone is covered under this.
The notification further said that to seek an income tax exemption under section 80-IAC of the Income Tax Act, an inter-ministerial board would take the final call. So far 94 startups have obtained this exemption.
The notification which come into effect from Tuesday will be reviewed on or before March 31, 2021.
Also, investments into eligible startups by non-residents, alternate investment funds - category I - shall also be exempt under this section beyond the limit of Rs 25 crores.
Further, there is no requirement of making any application for exemption under this section and there will be no case-to-case examination of startups.
The valuation of shares is also no more a criterion for exemption of investments into eligible startups under Section 56 of Income Tax Act.
Section 56(2)(viib) of the Income Tax Act provides that the amount raised by a startup 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 startup ventures.
  Share This News with Your Friends on Social Network  
  Comment on this Story  
Early Times Android App
BSE Sensex
NSE Nifty
Home About Us Top Stories Local News National News Sports News Opinion Editorial ET Cetra Advertise with Us ET E-paper
J&K Govt. Official website
Jammu Kashmir Tourism
Mata Vaishnodevi Shrine Board
Shri Amarnath Ji Shrine Board
Shri Shiv Khori Shrine Board
Train Enquiry
Jammu Kashmir Bank
State Bank of India
Passport Department
Income Tax Department
IT Education
Web Site Design Services
Jammu University
Jammu University Results
Kashmir University
IGNOU Jammu Center