Taxation of Start-ups & Investors
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
| Chapter No | Chapter name |
|---|---|
| Chapter 1 | Start-up |
| Chapter 2 | Definition of Start-up as per DPIIT Notification |
| Chapter 3 | Approvals Needed by Start-up Entity for Claiming Tax Benefits |
| Chapter 4 | Tax Efficacy of Different Start-up Entity Forms – Firms, LLPs & Private Companies |
| Chapter 5 | One Person Company as Start-up Entity |
| Chapter 6 | Tax Holiday to Start-ups under Section 80-IAC |
| Chapter 7 | Funding Blues of Private Limited Start-up Companies |
| Chapter 8 | Tax Implication of Funding a Start-up by Investing in it from Sale of Residential Property Invested in Start-up | Section 54GB |
| Chapter 9 | Exemption from Angel Tax to Private Limited Companies Start-ups |
| Chapter 10 | Computation on Fair Market Value of Shares Issued when Angel Tax Exemption is not applicable |
| Chapter 11 | Condition for Carry Forward or Set-off of Losses of Start-up PLC under Section 79 |
| Chapter 12 | Deferring TDS or Tax Payment in Respect of ESOP Income of Employees of Eligible Start-ups |
| Chapter 13 | Mandatory Acceptance of Payment through Prescribed Electronic Modes if Turnover Exceeds Rs. 50 Crores | Section 269SU |
| Chapter 14 | Constitution of Dispute Resolution Committee for Small and Medium Taxpayers |
| Chapter 15 | Fast-Track Mergers/Amalgamation for Start-ups |
| Chapter 16 | Taxation of Investors Exiting Start-ups |
| Chapter 17 | Tax on Reconstitution of Firms/LLPs |
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