This is a handy book for the taxation of start-ups & investors, including, but not limited to, the following:
- Tax Holiday u/s 80-IAC of the Income-tax Act 1961
- Angel Tax Exemption
All topics related to the taxation of start-ups & investors are discussed in light of the following:
- Department for Promotion of Industry and Internal Trade (DPIIT) Guidelines
- Inter-ministerial Board (IMB) Decisions made in IMB Meetings
- Relevant Legal Provisions
- Case Laws, including the landmark decision of Raw Pressery (P.) Ltd. vs ACIT [2022] 143 taxmann.com 158 (Mumbai-Trib.)
The Present Publication is the 6th Edition and has been amended by the Finance Act 2023. This book is authored by Taxmann's Editorial Board with the following noteworthy features:
- [Start-up Ready Reckoner]
- Eligibility Ready Reckoner for tax holiday u/s 80-IAC
- Compliance Ready Reckoner for turnover-limit linked compliances/exemptions for the following entities:
- Private Companies
- Limited Liability Partnership
- Traditional/General Partnership Firm
- Tax Benefits available for DPIIT-recognised start-up private limited companies based on their turnover
- [Tabular Format of Tax Holiday for Start-ups approved by IMB] in the following cases:
- Grounds of Innovation
- Grounds of Scalability
- Grounds of Employment Generation or Wealth Creation
- Grounds of Improvement in Products
- [Detailed Analysis of Finance Act 2023 Amendments] including new provisions regarding taxation & TDS on winnings from online games
- [Detailed Analysis with a Specific Focus] on the following topics:
- Revised Guidelines for recognition of start-up
- Process of IMB Certification for a tax holiday
- Options of low tax rate regime u/s 115BAA/115BAB without tax holiday
- Relative tax efficacy of various start-up entity forms, such as:
- Registered Partnership Form
- Limited Liability Partnerships
- Private Limited Companies
- One Person Company as a start-up entity form
- [Case Studies] of acceptance/rejection by IMB of a start-up's application for a tax holiday
- [FAQs] are given at the start of the book
- [Detailed Analysis of Difference between MSMEs and Start-ups] and benefits available under the MSMED Act, 2006
The detailed contents of the book are as follows:
- What is a start-up?
- Distinction between start-ups and MSMEs
- What is the criteria for recognition of start-ups by DPIIT
- Start-ups eligible for DPIIT – Recognition
- OPC as a start-up entity
- Innovation/scalable business model
- Start-up entities not eligible for DPIIT recognition
- Sole proprietorships – Whether eligible for DPIIT recognition
- Entities formed as a result of amalgamations/mergers/demergers/absorption, whether eligible for DPIIT recognition
- Entities formed as a result of compromise/arrangement – Whether eligible for DPIIT recognition
- Holding & subsidiary companies – Whether eligible for DPIIT recognition
- Joint Ventures – Whether eligible for DPIIT recognition
- Entities incorporated outside India – Whether eligible for DPIIT recognition
- Entities with foreign shareholding/stake – Whether eligible for DPIIT recognition
- Entities formed by splitting up/reconstruction of an existing business – Whether eligible for DPIIT recognition
- Entities incorporated with common director/DP/partner – Whether eligible for DPIIT recognition
- Procedure for DPIIT – Recognition of start-up
- Name change by DPIIT – Recognised start-up entity – Whether permitted
- CIN/LLPIN change by DPIIT – Recognised start-up entity – Whether permitted
- Conversion by a DPIIT – Recognised entity from one form to another – Whether permissible
- Automatically ceasing to be a 'start-up' under LSN
- Approvals needed by start-up entities for claiming tax benefits
- Tax efficacy of different start-up entity forms – Firms, LLPs & Pvt. Companies
- Tax holiday to start-ups under Section 80-IAC
- Funding blues of private limited start-up companies
- Exemption from 'angel tax' to private limited companies start-ups
- Computation of FMV of shares issued when angel tax exemptions is not applicable
- Conditions for carry forward or set-off of losses of start-up PLC under section 79
- Deferring TDS or tax payment in respect of ESOP income of employees of eligible start-ups
- Tax & TDS on winnings from online games
- Mandatory acceptance of payments through prescribed electronic modes if turnover exceeds INR 50 crores – section 269SU
- Taxation of investors exiting start-ups
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