NEW NORMS FOR START-UPS COMING SOON.
A new set of revisions has been proposed for start-ups, following the previous round post budget. What’s in store for the ‘intrapreneurs’ waiting in wings this time around? Read more.
A revised set of initiatives is being worked on by the government for start-ups, including rolling out norms for resolution of companies that are facing financial stress within 90 days and new tax proposals. The Dept. of Industrial Policy and Promotion (DIPP) will hold consultations over the next few days, thus providing further boost to start-ups, including norms for allowing them to raise more debt from promoters.
The tax benefits given in the last two budgets have already pumped up the start-up market by a fair margin. The laws for the labour law compliance have been made easier. Nearly 2,500 start-ups are getting Rs. 650 Cr. funding, and the funds have been planned to scale upto around Rs. 1,850 Cr.
Further additions that will soon be accounted into involve tax benefits for angel investors. A wide range of stock options would be devised for independent directors, mentors, and advisors. The ESOPs to be taxed at the time of share sale instead of allotment. Also, the cap on deposits from shareholders will be removed as well.
The total start-ups recognized in the country are 705, out of which 146 are eligible for tax exemption. 10 have already been given the tax exemption. Delhi has a total of 113 start-ups, Haryana 66, UP 38, Maharashtra 128, Gujrat 40, Telangana 29, Karnataka 94, Tamil Nadu 66, and Kerala 38. These 9 states are account for 83% of recognized start-ups.
So far, around Rs. 650 Cr. have been cleared and the plan is to step it up significantly to over Rs. 1,800 Cr. next fiscal and over Rs. 2,300 Cr. by March 2019. Talks have also been initiated to allow for exit before one year without being burdened with capital gains tax, a benefit that is currently available in listed entities.
Looking to spread wings to distant suburbs in Pune? Visit http://namratagroup.com/project to choose from a plethora of residential projects in vicinity of a rapidly-growing Pune.