startups

Social media platform Facebook on Tuesday launched ‘Facebook Hubs’, an initiative to foster innovation and offer support for budding entrepreneurs.

The effect was given by way of a two-pronged move by way of raising the limit of angel tax exemption for startups and also revising the definition of such an enterprise simultaneously.

Giving a major relief to startups, the government has decided to relax angel tax norms for startups, including increasing the investment limit to Rs 25 crore for availing income tax concessions by startups, an official said today.

In a relief to budding entrepreneurs, the Central Board of Direct Taxes (CBDT) on Monday increased tax exemption limit for startups to Rs 25 crore from earlier Rs 10 crore, according to sources.

The government on Wednesday eased the procedure for seeking income tax exemption by startups on investments from angel funds and prescribed a 45-day deadline for a decision on such applications.

Flipkart co-founder Sachin Bansal has pumped in about Rs 150 crore in ride-hailing platform Ola, according to documents filed with the Corporate Affairs Ministry.

Cab hailing platform Ola has issued 2.45 lakh shares worth over Rs 520 crore to Steadview Capital Mauritius an alternative asset management firm and an existing investor in the company, according to documents filed with the Corporate Affairs Ministry.

CBDT says “no coercive action or measures to recover the demands of completed assessment under income tax would be taken”.

Information Technology (IT) industry veteran Kris Gopalakrishnan Thursday expressed serious concern over the issue of angel tax notices to start-ups, and sought its withdrawal.

The commerce and industry ministry has taken up the issue of ‘angel tax’ notices being sent to startups with the finance ministry, Union Minister Suresh Prabhu has said. Several startups have raised concerns on taxation of angel funds under Section 56 of the Income Tax Act, which provides for taxation of funds received by an entity. “We have taken up the issue,” the commerce and industry minister said in a tweet.