India's start-up sector hailed the Budget saying easing of the angel tax will ensure more entrepreneurs join the start-up bandwagon.
Union Budget 2019: The government on Friday proposed a host of incentives, including a special arrangement for resolution of pending assessments of income tax cases, with a view to encouraging start-ups.
Finance Minister Nirmala Sitharaman in her maiden Budget speech said that start-ups in India are taking firm roots and their continued growth needs to be encouraged.
India's start-up sector hailed the Budget saying easing of the angel tax will ensure more entrepreneurs join the start-up bandwagon.
"The various startup friendly initiatives announced as part of the budget are important for this fast-growing ecosystem and will encourage India's youth to create value, wealth and livelihood opportunities for millions," Ola co- founder and Chief Executive Officer Bhavish Aggarwal said.
The thrust on digital payments will further accelerate the nation towards a transparent and cashless economy, Aggarwal said.
He lauded the government's focus on electric mobility and electric vehicles (EV) in the Budget adding that lower GST rate, interest subvention for EV loans and the commitment of Rs 10,000 crore towards FAME 2 are encouraging.
(With inputs from ANI and PTI)
1. Govt proposes starting exclusive channel for start-ups
)
The government in Union Budget 2019 announced that it will launch a dedicated Start-up channel to help budding entrepreneurs.
"The announcement of a dedicated TV channel for start-ups, is a positive step towards identifying budding entrepreneurs to augment the nation's economic development," Marico chairman Harsh Mariwala said.
"The fact that it will be designed and executed by start-up entrepreneurs themselves will hopefully ensure the credibility and effectiveness of the channel," he added.
2. 'Thumbs up for govt's vision for start-ups'
)
Lauding government efforts on easing the angel tax, GOQii Founder and CEO Vishal Gondal said, "The Budget 2019, is paving the way for a brighter future for India's start-up ecosystem with easing of the angel tax thereby ensuring more entrepreneurs join the start-up bandwagon."
Agreeing to his views Medikabazaar Founder and CEO Vivek Tiwari said, "It is encouraging to see the government's support for the start-up sector in this Budget. The continued extension of the Stand-Up India and Start-up India programs by the government until 2025 will ensure that start-ups all across the country will receive funds to accomplish their goals and dreams."
Concurring with him, Netmeds.com Founder and CEO Pradeep Dadha said, "No scrutiny in share valuation, e-verification of funds raised by startups and no further tax scrutiny certainly improves the ease of doing business. The startups in India have been burdened by angel tax and regulatory bottlenecks that have finally been addressed by the Modi government by reducing tax compliance and promising a speedy review of pending cases related to startups by CBDT."
"To resolve the so-called 'angel tax' issue, the start-ups and their investors who file requisite declarations and provide information in their returns will not be subjected to any kind of scrutiny in respect of valuations of share premiums," she said.
3. Major relief for Start-up in Budget 2019
)
Giving a major relief to budding entrepreneurs, the government in February relaxed the definition of start-ups and allowed them to avail full angel tax concession on investments of up to Rs 25 crore.
After claims being made by several start-ups that they were receiving tax notices under section 56(2)(viib) of the Income Tax Act, 1961, to pay taxes on angel funds received by them, the Department for Promotion of Industry and Internal Trade (DPIIT) in consultations with CBDT resolved the issue.
More than 540 start-ups have received an exemption from angel tax so far.
Indian Angel Network Chairman and Co-Founder Saurabh Srivastava said the Finance Minister has addressed the regulatory elements that currently harass both start-ups and angel investors. (Photo: PTI)
4. Angel tax for start-ups 'now history': Piyush Goyal
)
Railway Minister, who also holds the portfolio of Commerce and Industry, Piyush Goyal on Friday said steps announced in the Budget for start-ups would further strengthen ecosystem for budding entrepreneurs and would make the angel tax issue a history.
"Angel tax and other tax-related issues of start-ups "are now history." He said the measures proposed in the Budget will give a relief to the budding entrepreneurs.
"Old issues will now be sorted out through this budget announcements and we are well poised to now fast scale of startup ecosystem," the minister said.
The government has proposed a host of incentives, including a special arrangement for resolution of pending assessments of income tax cases, with a view to encourage start-ups. (Photo: PTI)
