Dear FM, Please Exempt Startups from All Taxes

BUDGET DEMANDS Nasscom says there is urgent need to remove angel tax that hurts startups
The National Associa tion for Software and Services Companies (Nasscom), in its pre budget recommendations, has as ked the Finance Ministry to ex empt startups from direct and indi rect taxes including minimum al ternative tax to reduce their comp liance burden and cash outflows.The industry body also said there was an urgent need to remove an gel tax that hurts startups that ne ed angel investment when finan cing from banks and venture capi tal funds is unavailable.

“Policy regulations like ease o compliance, reliance on self-certi fication instead of audits, tax ex emptions for startups will allow entrepreneurs to devote their ti me, energy and resources to build upon their innovative ideas,“ R Chandrashekhar, president of Nasscom, said in his recommenda tions to the ministry.

The Union Budget will be relea sed in February. Nasscom had con sidered the 2015 budget a `mixed bag’ and had said that severa chances had been missed to impro ve the lots of startups.

Nasscom had asked for the com pany to remove the angel tax in las year’s budget.

The IT industry body also wants the government to make it easier for individuals and funds to inves in early-stage startups, which is a high-risk business.

Nasscom wants the governmen to harmonise capital gains tax for resident investors with those of non-resident investors and tax ra tes for angel investors. It also wants the government to allow proprietary domestic capital to se up limited liability partnerships as an investment vehicle.

In addition, the lobby group wants the government to exemp capital gain tax on income from sa les of startups if they are then re invested in securities of new startups. Nasscom has also proposed a high-level committee to evaluate the emerging trends and technologies. The committee will lead discussions and create inputs that would be used in formulating policy.

Source: The Economic Times
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Author:

Neeraj; an entrepreneur & a visionary in the field of Railway, Defense & Automobiles, is a graduate in commerce and a Harvard Business School Alumni. He’s an expert in govt. liasoning & contracting and has an exceptional network & connections at both local as well as global level. He’s an expert in Market Strategy & Planning and has served number of overseas companies as an advisor/consultant. He takes a profound interest in upcoming startups & is very receptive towards ground-breaking ideas & innovations. He likes to brainstorm those ideas and if the values & philosophies matches; he is even ready to invest his resources, serve as a mentor or act as an incubator to futuristic businesses.

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