RELEVANT BUDGET HIGHLIGHTS
- Tax Relief for Investors in Startups: Measures are proposed to carry forward and set off losses for startups & increase in period of exemption of capital gains from sale of residential house for investment in startups up to March 2021.
- Angel Tax Clarification: Startups and investors who file requisite declarations will not be subjected to any kind of scrutiny in respect of valuation of share premium. A mechanism of e-verification will be put in place and with this, the funds raised by startups will not require any angel tax scrutiny.
- Helping Skilled Entrepreneurs: 80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries.
- TV Channel: Finance Minister is to start a TV channel exclusively for start-ups.
- Social Enterprises Startups: Electronic funding platform for social enterprises is to give necessary impetus to the startups.
- Loan incentive to MSMEs: Government to provide INR 1 Crore loan to MSMEs.
- Incremental loans: In continuation to bolstering MSME sector growth, interest subvention of 2% has been announced for fresh or incremental loans.
- Angel Tax Relief for Cat II AIFs: Valuation of shares issued to Cat II AIFs shall also now be out of scrutiny of Income Tax evaluation (earlier it was only for Cat I AIF).
- TDS above 1 crore: The government proposes to levy TDS of 2% on cash withdrawal exceeding INR 1 Crore in a year from a bank account.
- Surcharge on Individuals: In view of rising income levels, a surcharge will be levied on individuals with taxable income of INR 2 to 5 Crore, and INR 5 Crore and above.
- Corporate Tax Rate: Lower rate of 25% corporate tax rate shall now be applicable to companies with a turnover of up to INR 400 Crore (increased from previous threshold of INR 250 Crore).
- PAN and AADHAR to be interchangeable: PAN and Aadhar to be interchangeable; now Aadhar can be quoted instead of PAN, wherever PAN is required. It is ok to not have a PAN.
- Labour Laws: Proposal to streamline multiple labour laws into a set of ‘four labour codes’.
- Rental Housing: Current archaic rental laws to be updated to assess relation between lessor and lessee in a fair manner.
- Annual Global Meet: The Government is contemplating organising an annual global meet to get all three sets of global players: Industrialists, corporate leaders, corporate sovereign and venture funds.
- Platform to Raise Capital: The Government proposes to work on a platform for listing social enterprises and voluntary organisations to raise capital as equity, debt or units like mutual fund.