News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Direct Tax »
 Have not filed ITR yet? Know last date, late filing fee and other details
 Filing Income Tax Returns? Avoid These Six Common Mistakes
 Form 15G -For Non deduction of TDS on Interest for Individuals & HUF
  Filing ITR-1 this year? You must know about these changes
 File your ITR in just 7 minutes – Here is how Income Tax Return filing
  Don't make these mistakes to avoid getting tax notice ITR filing
 Income Tax returns deadline of July 31 likely to be postponed
 Income Tax returns deadline of July 31 likely to be postponed
 8 Documents You Need to Make the Process Simple It’s Time to File Income Tax Returns
 In which ITR Form NRIs need to furnish income tax return?
 Task Force for drafting a New Direct Tax Legislation-Extension of term

277 startups secure all-clear from Income Tax department
April, 12th 2019

As many as 277 startups have got an all clear certificate from income tax department, shielding them from the what has been popularly dubbed as the angel tax, as the government gets cracking with the implementation of the new startup framework. A total of 302 entities had applied for it, said a government official privy to the development.

The move comes after the Central Board of Direct Taxes (CBDT) and the Department for Promotion of Industry and Internal Trade (DPIIT) amended the startup framework in February to ring-fence them from ‘angel tax’.

Startups can apply to the DPIIT for approval and recognition under the new framework, which is then vetted by the CBDT.

“A total of 302 people have applied…. 277 have been sent an intimation or acknowledgement…. Our team has started informing the 25 about the discrepancy and all discrepancies will be shared with them by today so that they can reapply,” the official said.

Startups can submit this certificate to income tax authorities locally and get relief. The CBDT has already directed its field officials to promptly act in these cases.

The latest changes to the framework include a widened definition of startups and raised caps for investments that would not be scrutinised for angel tax.

Now, entities that have been in operation for up to ten years from date of incorporation or registration instead of the current seven years can be classified as start-ups.

Afirm can be a categorised as a startup even if its turnover for any of the financial years since incorporation has not exceeded Rs 100 crore instead of the existing cap of Rs 25 crore. Investment limit of Rs 10 crore has been raised to Rs 25 crore.

Besides, investments by listed companies with a net worth of Rs 100 crore or turnover of Rs 250 crore into an eligible startup will be exempt from section 56 (2) of the Income Tax Act, beyond the Rs 25 crore limit.

The section 56 (2) (vii)(b) of the Income Tax Act provides that if a closely held company issues its shares at a price more than its fair market value, the amount received in excess of the fair market value will be taxed as income from other sources. The provision was introduced in 2012 by the then finance minister Pranab Mukherjee as an anti-laundering measure.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions