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Angel tax relief to startups

Angel tax relief to startups

Angel funds refers to a money pool created by high net worth individuals or companies, generally called as angel investors, for investing in business startups. Various startups founder claimed that they received notice under section 56(2) (vii) (b) of Income Tax Act (“Act”) from Income Tax Department (“Department”) to pay taxes on angel funds raised by them. Entrepreneurs have raised their concern on such tax notices. However, India is likely to soon announce the concessions to shield startups from the angel taxes. The changes will be made to the conditions specified under section 56(2) (vii) (b) of the Act to … Read more

Transfer pricing country by country report

Transfer pricing: Introduction to Country-by-Country report (CbCR)

Transfer pricing documentation and CbCR are provided by the Organization for Economic Cooperation and Development (OECD). These reports benefit and enable development for multinational enterprises (MNE’s) by leaps and bounds.

CbCR will include details of global profit allocations, taxes paid and economic activity indicators in countries in which the multinational organizations operate. This implies that CbCR will have significant transparency and illuminate technical, operational and systemic challenges that any business faces.

In order to compile such a detailed report, there must be an engagement at the Board level. Senior management will have to step in at the early stages itself … Read more

FDI in India

Refining FDI provisions

Being one of the most diligent sources of revenue for the Indian economy, foreign direct investment (FDI) is gaining importance with each passing day. Investments made by any individual or firm in one country into business streams situated in a foreign country are termed as FDI. Generally, FDI takes place when the following conditions are satisfied by an investor:
 

  • Establishing foreign business operations
  • Acquiring foreign business assets
  • Establishing ownership
  • Controlling interest in a foreign company

With the purpose of fortifying the investor’s and stakeholder’s sentiments in the Indian e-commerce sector, refined policy is introduced to ensure that online and … Read more

Start-up registration with DIPP

Start-up registration with DIPP

With a view of improving the Indian economy and increasing the entrepreneurial drive, Indian Government under PM Narendra Modi’s leadership launched Start-up India Initiative in January 2016. The Action Plan shepherd by Department of Industrial Policy and Promotion (DIPP) is aimed at making start-up registration process more seamless and easing way for new entrepreneurs.

Start-up India Action Plan
Start-up India Action Plan benefits are three-fold:

  1. Simplification: First key benefit is expediting the start-up registration process. The idea is to improve compliance regime support, provide a hub for start-ups in India, registration and access through mobile app / portal, legal support
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filing on financial statement

Filing of financial statement

Financial statements of a company are necessarily required to be filed with Ministry of Corporate Affairs (MCA) annually. The form for filing such financial statements with MCA is AOC – 4. All the companies fall under this category and are compulsorily required to file form AOC – 4. However, few Companies are covered under Extensible Business Reporting Language (XBRL) and are required to upload the financial statements on MCA portal in XBRL format as per the Companies (Filing of documents & Forms in Extensible Business Reporting Language) Rules, 2015. In this case the requirement of signing under hand is not … Read more