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TMI BlogTax Exemption to StartupsX X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Exemption to Startups - News and Press Release Dated:- 12-4-2017 - News - Various tax exemptions have been given to Startups in the recent past - Following direct tax incentives were provided in Income-tax Act,1961 ( the Act ) to promote Start-ups through Finance Act,2016 : Introduction of new section 54EE in Income-tax Act, 1961 to exempt investmentof long term capital gains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by an investor in a fund notified by Central Government. Amendment of section 54GB to provide exemption of capital gains arising out of sale of residential property, on investing the same in shares of Start-up company. Introduction of new section 80-IAC to provide 100% deduction for three consecutive years out of five years, to profits of start-ups which are approved by Inter-Ministeria ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Board of Certification notified by DIPP. To prevent incidence of Angel Tax on angel investors investing in approved start-ups, CBDT vide Notification No.45/2016 dated June 14,2016 notified that Angel investors funding to approved start-ups shall be exempt from incidence of tax under section 56(2)(viib). Further, vide Finance Act, 2017 , following benefits have been provided to st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art-ups: Amendment of section 79 of the Act to provide that in the case of a company being an eligible start-up, loss shall be carried forward and set off against the income of the previous year, even if a change in shareholding has taken place in a previous year subject to all the shareholders of such company on the last day of the year or years in which the loss was incurred, continuin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to hold shares on the last day of such previous year. The restriction of fifty one percent of shareholding of company to remain unchanged in order to carry forward and set-off the loss of earlier years has therefore been relaxed in the case of start-ups. Amendment to provide that deduction under section 80-IAC can be claimed byan eligible start-up for any three consecutive assessment years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out of seven years beginning from the year in which such eligible start-up is incorporated asagainst three years out of five years provided by Finance Act,2016 . The above exemptions would encourage seed-capital investment in Startups, facilitate their growth and meet the working capital requirements during the initial years of operation. Further, they would also promote investments into Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt-ups by mobilizing the capital gains arising from sale of capital assets. This information was given by the Commerce and Industry Minister Smt. NirmalaSitharaman in a written reply in Rajya Sabha today. - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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