DARE - Because Entrepreneurs Do

Ever since, Finance Minster Pranab Mukherjee tabled his budget proposals for 2012-13 fiscal year, the angel, VC and entrepreneur community have been pouring over portions of the proposals to unearth what is now commonly termed as "Start up tax". There is also a Facebook page seeking petitions against the tax.

In order to help you understand this new animal, we compile some useful and insightful articles on the subject. Please ping us with anything interesting you may have heard.

Angel Investors Beware: Funding Startups Could be Classified as Income

Startups, founders and Angel investors, please note the change in Budget 2012 that has been slipped in, innocuously. An investment in any private company could be classified as "income" unless you can justify the investment and valuation to a tax officer. Such income is taxable.

Budget 2012: Angel Investment In Startups Could be Classified as Income

It is proposed to insert a new clause in section 56(2). The new clause will apply where a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares.

Budget 2012: Threat to enterprise, mentoring; angel investors worried

Now that the Budget fineprint is emerging, the Devil truly appears to be in the detail. For the entrepreneurship and startups space, despite some sops given by Finance Minister Pranab Mukherjee to micro, small and medium enterprises (MSMEs), there is one clause which may derail the entire entrepreneurship movement currently taking place across the country.

India Budget 2011-12 - negative for IT Startups

Finance Minister Pranab Mukherjee's 2011-12 Budget is very disappointing for IT Industry. In his determination to make companies and individuals pay more taxes, he has overlooked the fact that many IT companies have started working under SEZs and bringing SEZ enterprises under MAT is a huge negative for such companies.

Budget Should Look at Sunrise Industries Now

When you look at the current spurt in internet-based companies (those in ecommerce, social networking, online publishing, cloud computing or mobile-based services), you are reminded of the IT or ITES industry - how it stood 10-15 years back. This entire gamut of internet-empowered companies now deserve tax incentives - on the lines of what IT and ITES have been getting as sunrise industries for more than 10 years now. Giants like Infosys got concessional land grants to set up huge campuses, among other benefits. Similarly, though the telecom sector is under a lot of regulatory pressure, operators have enjoyed 5 years of income tax exemptions.

Budget 2012 is not good news for entrepreneur

Now that the Budget fineprint is emerging, the Devil truly appears to be in the detail. For the entrepreneurship and startups space, despite some sops given by Finance Minister Pranab Mukherjee to micro, small and medium enterprises (MSMEs), there is one clause which may derail the entire entrepreneurship movement currently taking place across the country.

No rollback, but new safeguards may come for angel investors: Finance Ministry

NEW DELHI: The finance ministry has said it could bring in more safeguards in the income-tax law to ensure that genuine angel investors are not impacted by a budget proposal to tax exorbitant profits by venture capital funds, but effectively ruled out a rollback. "If you feel additional safeguards need to be provided we will see," Finance Secretary R S Gujral said at a FICCI conference. Gujral was responding to a query on the amendment in the law that seeks to treat share premium in excess of fair market value as income and levy a tax on it. The amendment is aimed at curbing conversion of black money into white by issuing shares at high premium in bogus companies.

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