Live
- BGT: Rohit, KL Rahul suffer injury scares ahead of Boxing Day Test
- PM Modi Visits Indian Labour Camp And Engages With Diaspora In Kuwait
- South Korea: Main opposition urges acting president to sign special counsel bills or face consequences
- Central PSUs record 47 per cent jump in net profit for 2023-24, market cap doubles
- Man In Madhya Pradesh Dies By Suicide, Leaves Video Alleging Harassment
- AAP Likely To Replace Shoaib Iqbal With Son Aaley Muhammad Iqbal For Matia Mahal Seat
- Multi-Storey Building Collapse In Mohali Triggers Massive Rescue Operation
- Anti-Corruption Officers Assaulted By Revenue Clerks In Uttar Pradesh
- Earthquake tremors felt again in Prakasam district
- G Trisha, spinners star as India win inaugural U19 Women’s Asia Cup title
DPIIT proposes relaxation in I-T to help raise funds
With a view to facilitate fundraising by start-ups, the Department for Promotion of Industry and Internal Trade
New Delhi: With a view to facilitate fundraising by start-ups, the Department for Promotion of Industry and Internal Trade (DPIIT) has proposed relaxation in the income tax laws pertaining to sale of residential properties and carrying forward of losses, sources said.
These suggestions are part of 'Startup India Vision 2024', prepared by the DPIIT for the new government to promote growth of budding entrepreneurs, who face difficulty in raising finances.
As part of easing regulatory requirements for start-ups, the DPIIT has recommended amendments in Section 54GB (capital gain on transfer of residential property not to be charged in certain cases) and Section 79 (carry forward and set off of losses in case of certain companies) of the Income Tax Act.
It has suggested changes in Section 54GB of Income Tax Act to exempt proceeds on sale of residential properties from capital gains tax if it is used to fund a start-up.
"Budding entrepreneurs often sell their residential properties to support their business activities," one of the sources said.
As part of the amendment of this section, it has also proposed to reduce founders' shareholding requirements from 50 per cent to 20 per cent and mandatory holding period from 5 years to 3 years as it would enhance flexibility of founders to raise capital by selling the properties.
