Government can make big announcement for those doing their business, will get 2 years exemption on this tax

The central government may soon make a big announcement for Indian startups. The news is coming that those investing in unlisted startups can get tax exemption for up to 2 years.

New Delhi: Indian startups have to face a lot of trouble on the funding front due to the Korna virus spread across the country. According to information received from sources, the central government can soon make a big announcement for Indian startups. The news is coming that those investing in unlisted startups can get tax exemption for up to 2 years. Since the pandemic, startup companies across the country are facing funding problems. Keeping this in mind, the government may take this decision soon.

Also Read: What Is The Penalty For Late Filing Of ITR?

LTCG tax exemption

Let me tell you, the government has imposed strict restrictions on all investments coming from China. Since then, domestic Indian startups have plenty of limited resources left for funding. In such a situation, the government can take a big step to overcome this problem. CNBC Awaaz has received information from sources that if Domestic investors invest in unlisted startups, they can get LTCG tax exemption for two years.

Investors will get incentive

The aim of the government is to give some incentives to those Domestic investors who invest in unlisted startups. So that Indian startups who are struggling with the funding problem can open a new option for funding. In fact, foreign investors are more interested in Indian start ups registered in the tax haven country and invest in them.

LISDATE Startup gets tax rebate

Explain that this tax exemption is available for investing in listed start ups, but unlisted start ups are not exempt. The Standing Committee of Parliament has already recommended to the government to give relief on this. The Finance Ministry is seriously considering this proposal and it can be announced soon.

You can get this relief –

1. Angel investors will also get relief

2. Government promoting buying a share in unlisted startups

3. Parliament’s Standing Committee recommended

4. Relief from LTCG was recommended

5. ITAI Delhi also decided to give relief to investors

6. Consideration of LTCG tax exemption up to 2 years

7. Domestic VC’s will get relief in investment

What is a startup

In general terms, a startup would mean starting a new company. Such companies are started by young businessmen themselves or with two or three people. The starting person is the starting capital in the company and also runs the company. This company works on relatively new products or services, services that are not available in the market at that time.

If, as a government definition, a startup is a company that has been registered in India within the last 5 years and its turnover has not exceeded 25 crores in any financial year. This company deals with innovation, development, deployment, new products.

The post Government can make big announcement for those doing their business, will get 2 years exemption on this tax appeared first on informalnewz.