Goodbye angel tax: Rahul Gandhi’s big promise for startups, no permission needed for 3 years

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Published: March 28, 2019 8:25:13 PM

Rahul Gandhi said that there won't be permission required for first three years of business by startups, angel tax will be removed, incentives and tax credits would be available apart from easy bank credit if Congress is voted to power.

Gandhi said Congress is preparing the party manifesto after multiple discussions with stakeholders.

Even as Congress President Rahul Gandhi has been accusing the Modi government for alleged job crisis in the country, he is looking towards aspiring entrepreneurs and startups in India to solve that problem. Rahul Gandhi, in a tweet on Thursday, announced sops for budding entrepreneurs and startups if Congress is voted to power in the Lok Sabha elections.

Rahul Gandhi said that for those who want to start a new business and create jobs, his party has plans that includes no permission to be taken for the first three years of starting a new venture. Rahul Gandhi also said that the controversial angel tax will also be removed along with incentives and tax credits that would be available to startups based on the number of jobs created.

“Don’t bother about anything, there is no permission you need. Start your business, get to work,” Rahul Gandhi told PTI in an interview.

He said the “powerful idea” came after his discussions with various entrepreneurs, during which they highlighted getting permissions as their biggest issue from different agencies before starting their business.

“Why should only Nirav Modi get thousands of crores? How many jobs has he created in India? Why can’t a youngster who wants to start a business, who wants to give India 2,000 jobs, get a bank loan,” Rahul Gandhi asked.

Rahul Gandhi said Congress is preparing the party manifesto after multiple discussions with stakeholders that includes many such policies to boost business, farming, employment generation etc.

127 startups had registered with the Department for Promotion of Industry and Internal Trade (DPIIT) from February 27 onwards for angel tax exemption through Form-2, around 120 of them were granted exemption from Section 56(2)viib of the Income-Tax Act, 1961 in an email notification on March 20.

DPIIT had issued notification on February 19 pertaining to the number of years since incorporation, turnover, and amount raised by startups up to Rs 25 crore in angel funding to apply for the exemption.

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