The tax to the angels, other questions of the newly created companies are now history: Goyal
New Delhi, July 5 () The Minister of Commerce and Industry, Piyush Goyal Friday, said that the steps announced in the Budget for new companies would further strengthen the ecosystem for budding entrepreneurs and would make the issue of the angel tax a history.
The tax on angels and other tax-related issues of start-up companies are now history, he said.
He said that the measures proposed in the budget will give relief to budding entrepreneurs.
The old problems will now be resolved through these budget announcements and we are well prepared for the rapid scale of the start-up ecosystem, the minister said.
The government has proposed a series of incentives, including a special agreement for the resolution of outstanding assessments of income tax cases, in order to encourage the creation of businesses.
The Finance Minister, Nirmala Sitharaman, in her Speech on the Budget, said that the new companies in India are taking firm roots and that their continued growth should be encouraged.
To resolve the so-called angel tax, start-up companies and their investors who submit the requirements statements and provide information in their statements will not be subject to any scrutiny with respect to valuations of share premiums, he said. .
The problem of establishing the identity of the investor and the source of their funds will be resolved through the implementation of an electronic verification mechanism.
With this, the funds raised by the new companies will not require any kind of scrutiny from the income tax department, he said.
An angel investor puts the funds into a start-up when he is establishing his business in the competitive market. Normally, around 300-400 new companies obtain angel financing in a year. Your investment in a unit ranges from Rs 15 lakh to Rs 4 crore.
The finance minister also proposed to relax certain conditions for the transfer and compensation of losses in the case of start-ups.
On January 16, 2016, the government launched the 'Startup India' initiative to build a solid ecosystem to foster innovation and entrepreneurship. It also provides certain taxes and other incentives.
So far, 19,665 new companies are recognized by the Department for the Promotion of Industry and Internal Commerce (DPIIT). They are eligible for the payment of taxes and other incentives.
When asked about the proposal to relax the rules of direct foreign investment in the means of animation, Goyal said: It will be more clarifying in nature.
Earlier, speaking with reporters, he said that the ministry will try to put on the table as soon as possible the proposals related to the relaxation of FDI in the sectors.
Finance Minister Nirmala Sitharaman in her Speech on the Budget said that the government will examine the suggestions for greater openness of FDI in aviation, the media (AVGC - Animation, visual effects, games and comics) and the insurance sectors in consultation with all interested parties.
Coal and Mining Minister Pralhad Joshi on Friday praised the 2019-20 Union budget and said it was in favor of the poor and in favor of farmers.
Joshi welcomed the Budget saying it is pro-poor and pro-farmers, the minister said.
Referring to Pradhan Mantri Awas Yojana - Gramin (PMAY-G), which aims to achieve 'Housing for all by 2022', he said it was a welcome decision to equip homes with services such as toilets, electricity and LPG connections. The new initiatives in the 2019-20 Union Budget to encourage new businesses, tax reforms, and the promotion of rural infrastructure make it a reformist budget with a view to the future, he said. RR CS SID RR HRS