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


PTI, Jul 7, 2019, 11:30 AM 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

Cow smuggler dead, six others injured after their vehicle overturns during police chase

Assam bypolls: Samaguri Cong candidate alleges rigging by BJP, demands repolling

Who in Congress has said Article 370 will be restored? Shah spreading lies: Kharge

All arrangements in place to ensure smooth darshan at Sabarimala shrine: Kerala police

Delhi pollution: Mothers’ group write to health minister, highlight respiratory issues among kids

Union Minister Joshi hands over 10 battery-operated vehicles to Puri temple

COVID-19 scam: Karnataka cabinet decides to set up SIT

Related Articles More

If data doesn’t suit them, they’ll change it altogether: Cong’s swipe at govt over Goyal’s remarks

Sensex drops 110pts, Nifty falls for 6th day on FII selling, inflationary concerns

USD 1 trillion a year needed for developing nations by 2030: High-Level Group on Climate Finance

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

MUST WATCH

New Technology In Kambala

Lakshdeepotsava 2024 Shree Krishna Mutt

Punganur Cow

Rangoli design

Jagadeesh Nagaraj Kudupali Audio Viral


Latest Additions

Cow smuggler dead, six others injured after their vehicle overturns during police chase

Assam bypolls: Samaguri Cong candidate alleges rigging by BJP, demands repolling

Who in Congress has said Article 370 will be restored? Shah spreading lies: Kharge

All arrangements in place to ensure smooth darshan at Sabarimala shrine: Kerala police

Delhi pollution: Mothers’ group write to health minister, highlight respiratory issues among kids

Thanks for visiting Udayavani

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