“Startups have been experiencing realistic complications on the taxes front following the cover usefulness of certain segments. We have made a reflection to the govt on Jan 16 regarding this,” said Saurabh Srivastava, popular project naturalist, and co-founder of Indian Angel Network.
“The size and significance of such financing have been huge in the past few years and the govt has done well to learn that. It is important that they now ensure structured streamlined laws to encourage the environment,” Rajat Tandon, president of Indian Private Equity and Venture Capital Association said.
Image source: business-standard.com
Apart from this, the start-up industry has also suggested that the govt should eliminate Minimum Alternate Tax (MAT) for start-ups qualified by Division of Commercial Plan and Marketing (DIPP) in order to improve start-up environment in the nation. It has also suggested that temporary capital benefits for start-up trader should be limited to 15 percent and the having period for processing long lasting capital benefits tax should be 1 year. “As far as the main city benefits tax is considered, we have requested the govt to not distinguish between public detailed companies and start-ups,” said Nishith Desai, founder of law company Nishith Desai Affiliates and a board member of TIE in Mumbai.