What’s in it for startups? Last year, we had a horrible section (Read the full e-book) that still works against angel investors in early stage startups. (Angel investments would be taxed if they couldn’t prove that an investment had a sound valuation backing it – and early stage startups are wet-finger-in-the-air valuations) The Return of [...]

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When the CBI investigated BCCI Chief N. Srinivasan’s company, India Cements, they seem to have uncovered why the “Startup Tax” was introduced in the budget. (Read Full Set of Posts) …

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The FM, in his remarks while introducing the Finance Bill today, provided some relief to the startup community by potentially allowing angel investments to not attract the Startup tax. (For More: Read the E-Book, and all posts) It has been proposed in the Finance Bill that any consideration received by a closely held company in [...]

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I consolidated material from all the posts on the Startup Tax and put it into an easy-to-download E-Book (PDF). I hope you like it! As things change, I will update the E-Book. Tweet

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Lots of questions have come in on the Startup tax post (Angel Investors Beware: Funding Startups Could be Classified as Income) and I’ve tried to address them here. The idea, for those who don’t have the time, is that investments in any company must now be “justified” to a tax officer, unless they are by [...]

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The Startup Tax situation has elicited serious response. Pluggd.in has reported that the Ex-CEO of TCS, S. Ramadorai, has been asked to advise the government on the issue. Indian government has asked S. Ramadorai, ex-CEO of TCS to advise the government on startup tax bill. S Ramadorai currently serves as an advisor to the Prime [...]

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Also Read: Angel Investors Beware: Funding Startups Could be Classified as Income Many investors have asked, privately, if they can set up a Venture Capital fund, because any company such funds invest in, will no longer get the startup tax. Such VC funds have regulations from SEBI. You will want to read: The Venture Capital [...]

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Also Read: Angel Investors Beware: Funding Startups Could be Classified as Income Yet another amendment in the budget will open a can of worms, though this one might seem roughly acceptable, even if it is a big bother. In the Budget, another unnoticed clause requires an unlisted company to know the source of the funds [...]

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We know now that the new amendment in the budget will attempt to tax angel investors that want to buy into a company at a “premium” valuation, a concept rife in the startup world. The “Startup Tax” article has generated some excellent responses. Among them is Rajesh’s reply which I’d like to highlight in a [...]

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Startups, founders and Angel investors, please note the change in Budget 2012 that has been slipped in, innocuously. An investment in any private company could be classified as “income” unless you can justify the investment and valuation to a tax officer. Such income is taxable. Look at the “Memorandum” under section “Share premium in excess [...]

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