CORPORATE AND PROFESSIONAL UPDATE JANUARY 20, 2016
CORPORATE AND PROFESSIONAL UPDATE JANUARY 20, 2016
HOW TO GET RECOGNIZED AS A START-UP?
Eligible businesses for a startup:
A business which aims to develop and commercialize:
- A new product or service or process; or
- A significantly improved existing product or service or process that will create or add value for customers or workflow.
However, the mere act of developing products or services or processes which do not have the potential for commercialization or undifferentiated products or services or processes or products or services or processes with no or limited incremental value for customers or workflow would not be considered as an eligible business.
Startup shall mean an entity:
- Incorporated or registered in India not prior to five years, with annual turnover not exceeding Rs. 25 crores in any preceding financial year;
- Working towards innovation, development, deployment, or commercialization of new products, processes, or services driven by technology or intellectual property.
The Start-up should be:
- Supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator established in a post-graduate college in India; or
- Supported by an incubator which is funded (in relation to the project) from Govt. as part of any specified scheme to promote innovation; or
- Supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator recognized by Government; or
- Funded by an Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/ Angel Network duly registered with SEBI* that endorses innovative nature of the business; or
- Funded by Govt. as part of any specified scheme to promote innovation; or
- Have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted. Source-Taxmann.com.
IT: Easwar Committee suggested several taxpayer-friendly measures to improve ease of doing business, reduce litigation and accelerate the resolution of tax disputes, such as:
- Simplifying provisions related to TDS and increase in threshold for payment subject to TDS
- TDS rates for individuals be reduced to 5% from 10%
- Deletion of Section 143 (1D) to avoid undesirable delay in issue of refund
- Making the process of refunds faster and pay 12-18% interest if refund issued beyond 6 months.
- Payment of Interest on refund due out of Self Assessement Tax
- Stock trading gains of up to Rs.5 Lac to be treated as capital gains and not business income
- to desist from the practice of adjusting tax demand of a taxpayer whose tax return is under assessment against legitimate refunds due.
- Deferring the contentious Income Computation and Disclosure Standards (ICDS) provision.
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