The 2017 Budget is near, and this time, it comes a month in advance. What are your expectations from this year’s Budget?
As per the suggestions made by NASSCOM, startups be exempted from direct and indirect taxes including MAT , a move that would reduce compliance burden and reduce cash outflows. Further there is an urgent need to remove angel tax that serves to tax the capital receipts, when the availability of financing from recognized sources such as Banks and Venture Capital Funds is unavailable and angel funds is the only available source. Similarly, NASSOCM strongly recommended that companies may be allowed to carry forward losses even if there is change in ownership structure, if it for capital infusion in the entity.
- Harmonise capital gains tax for resident investors with non-resident investors and tax rates for angel investors
- Allow proprietary domestic capital to set up an LLP as an investment vehicle
- Exemption of capital gains tax on income from sale of equity of a startup if the proceeds are reinvested in securities of new start-ups