PC: The Hindu

DD channel for start-ups



 

Government proposes to start a channel within the DD bouquet of channels exclusively for start-ups.
  • The channel will serve as a platform for promoting start-ups, discussing issues affecting their growth, matchmaking with venture capitalists and funding and tax planning.
  •  Channel will be designed and executed by start-ups themselves.
  • The condition for carry forward and set off of losses in cases of eligible start-ups is proposed to be relaxed enabling them to carry forward their losses on satisfaction of any one of the two conditions – continuity of 51% shareholding/voting power of continuity of 100% of original shareholders.
  •   Further, the provision which allows exemption of capital gains from sale of residential property on investment of net consideration in equity shares of eligible start-up shall be extended by 2 years.
  •  The benefit will be available for sale of residential property on or before 31stMarch, 2021.
  • The condition of minimum holding of 50% of share capital or voting rights in the start-up is proposed to be relaxed to 25%.
  • The condition restricting transfer of new asset being computer or computer software is also proposed to be relaxed from the current 5 years to 3 years.
  • Start-upsi India are taking firm roots and their continued growth needs to be encouraged.

To resolve the so-called ‘angel tax’ issue, the start-ups and their investors who file requisite declarations and provide information in their returns will not be subjected to any kind of scrutiny in respect of valuations of share premiums.

  • The  issue of establishing identity of the investor and source of his funds will be resolved by putting in place a mechanism of e-verification.
  • With this, funds raised by start-ups will not require any kind of scrutiny from the Income Tax Department.

About The Indian Iris

Leave a Reply

Your email address will not be published. Required fields are marked *