Budget 2019 to ease regulatory, tax compliance burden on startups: Nasscom


PTI, Jul 7, 2019, 1:09 PM IST

New Delhi: IT industry body Nasscom has said the slew of incentives announced for startups in the Budget will help facilitate funding and reduce the regulatory and tax compliance burden on these fledgling enterprises.

As part of the Budget, the government has proposed a host of incentives, including a special arrangement for resolution of pending assessments of income tax cases, with a view to encouraging startups.

“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,” Nasscom Executive Council member Kunal Bahl said. He said it will also encourage newer startups, especially from tier II and III areas, and in parallel infuse considerable foreign investments in India.

In her Budget speech, Finance Minister Nirmala Sitharaman had stated that startups 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, a move aimed at resolving the so-called ‘angel tax’ issue.

She had also said the issue of establishing the identity of the investor and source of his/her funds will be resolved by putting in place a mechanism of e-verification and with this, funds raised by startups will not require any kind of scrutiny from the Income Tax Department.

Bahl, who is also the co-founder of e-commerce major Snapdeal, pointed out that the startup ecosystem in India has long been reeling from three challenges, high credit cost, lack of adequate and timely funding.

“Nasscom has always been advocating the needs for startups and emerging entrepreneurs in the country and will continue our support to the government in fulfilling the collective dream of enabling India to become a more vibrant startup hub,” he said.

Echoing his views, MoEngage founder and CEO Raviteja Dodda said the new regulations around angel tax will provide the much-needed boost for the startup ecosystem and help founders focus on the execution and build great businesses.

Manu Goyal, founder and COO of ApnaPay, said several tax proposals aiming to promote investments in startups and relaxation on corporate tax will lead to economic growth of great magnitude.

“The no angel tax heat from Income Tax authorities and the share value premium issue resolution will foster an environment of positivity and growth for India’s startup ecosystem,” Tanuj Shori, founder and CEO of Square Yards, added.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Karnataka sets up panel for internal reservation among STs

Maharashtra Assembly Elections 2024 | Congress in clutches of urban naxals, became puppet of people with divisive agenda: J P Nadda

Even if Indira Gandhi returns from heaven, Article 370 will not be restored: Amit Shah

Tilak Varma slams ton as India take 2-1 lead against South Africa with 11-run win in third T20I

PM Modi to visit Bihar’s Jamui to commemorate Janjatiya Gaurav Divas

BJP offered Rs 50 cr each to 50 Cong MLAs to remove Karnataka govt: CM Siddaramaiah

BJP to launch ‘Parivartan Yatra’ ahead of Delhi Assembly polls

Related Articles More

FSSAI directs online platforms to deliver food items with minimum 45 day shelf life

Retail inflation rises to 6.21 pc in Sep amid higher food prices

Sensex, Nifty slump 1 pc amid unabated foreign fund outflows, weak global trends

Integrated Air India-Vistara entity’s first flight takes off from Doha

PHF Leasing Limited Transforms into Credifin

MUST WATCH

Punganur Cow

Rangoli design

Jagadeesh Nagaraj Kudupali Audio Viral

Gho Pooja in Deepavali Festival

Melukote Deepavali


Latest Additions

Byelections: 81.84 per cent voter turnout in bypolls in three Assembly segments in Karnataka

Karnataka sets up panel for internal reservation among STs

Maharashtra Assembly Elections 2024 | Congress in clutches of urban naxals, became puppet of people with divisive agenda: J P Nadda

Even if Indira Gandhi returns from heaven, Article 370 will not be restored: Amit Shah

Jharkhand Assembly Elections 2024 | EC orders suspension of IPS officer posted as observer for dereliction of duty

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.