Start-ups that have been ordered to pay tax despite valuations being marked down in recent funding rounds are challenging the demands, complaining that the move runs counter to the government’s campaign to encourage entrepreneurial spirit. With startup fever having waned over the past year …
Tag: Ashok Maheshwary
As valuations plunge, start-ups asked to shell out more in tax
Startups that have seen marked down valuations in subsequent funding rounds have been ordered to pay tax on the grounds that the first round of investment was made at a premium. The Income Tax department has issued such orders or adjustments in about 100 cases across India between November 30 and…
Government to make changes in income tax act to promote startups
The government has removed the so-called ‘angel tax’ for investors providing funding to startups under its ambitious plan to boost entrepreneurship and job creation in the country. Funding to startups, notified under the government-approved plan announced by PM Narendra Modi in Januar…