-
Budget 2016 expectations: Finance Minister Arun Jaitley is all set to present his third budget and a lot of expectations are riding on him to power up PM Narendra Modi's Startup India scheme. While PM Modi has promoted the Startup India scheme massively and backed it up with personal promotions aside from effecting rules to provide an easier business environment for startups, still the Indian Angel Network wants certain policies from the NDA govt and it has unveiled a wishlist that they would like to see reflected in Union Budget 2016. Check out the top 10 noteworthy points:
-
1. Budget 2016 expectations: Padmaja Ruparel, President, Indian Angel Network hopes that this budget ends one anomaly – treating unfavourably investments by AIFs and Angel Groups in unlisted companies. (Source: website)
-
2. Budget 2016 expectations: Saurabh Srivastava, Co-Founder, Indian Angel Network has full fledged list of expectation from the ‘Startup India’ savvy government. He explains, "Currently investors of such companies pay a much higher tax on capital gains while taking a far higher risk as compared to publicly traded shares. We do expect that capital gains tax for AIF funds and angel group investors will be aligned to the current tax regime for investments made in listed shares."
-
3. Budget 2016 expectations: Saurabh Srivastava added “The Start up India announcement was a great start. We are hoping that the budget would introduce the necessary measures to take it forward.” Saurabh shared the following wishlist of Indian Angel Network: a. The Income Tax Exemption for Start ups; b. Process of defining and identifying start ups; c. Establishment of the Credit Guarantee Fund; d. Waiver of compliances/ Self Certification; e. Creation of the Rs 10,000 Cr provision for Funds of Funds activity. (PTI)
-
4. Budget 2016 expectations: In addition, Saurabh said, “We also hope that the government would end one anomaly and that is of treating unfavourably investments by AIFs and Angel Groups in unlisted companies.” Here is the 6-point add-on list: a. Today, capital gains tax on investments in publicly listed companies are treated as long term capital gains and taxed at 0% if held for over one year and as short term if held for less than a year and taxed at 15%( plus STT in both cases); b. But investments in unlisted companies or start ups is taxed at 33% for short term and at 20% for long term capital gains, with the holding period for long term capital gains as 3 Years; c. These investments in unlisted companies take more risks, are illiquid and create new ventures; d. They should be treated more favourably or at least on par with trading shares on the stock exchange; e. This should be allowed at least for investments made by SEBI registered, widely held AIF Category 1 and Angel Funds; f. The AIFs can collect STT like stock exchanges on such transactions. (Reuters)
-
5. Budget 2016 expectations: “Implementing these will dramatically increase the flow of risk capital to startups, something we will need badly as the start up initiative will enthuse innovators around the country to turn entrepreneurs and they will then be disheartened if no risk capital is available to fund their start ups. This is much need capital as last year, Indian companies raised only $ 2 billion from IPOs but $ 20 billion from VC/PE money, 90% of which comes from overseas,” he explained.
e-Aadhaar app launch in India: Update your date of birth, address and phone number instantly with the upcoming all-in-one app
