Here Is What The Union Budget 2019 Has In Store For Startups

Budget 2019: Here is how Finance Minister Sitharaman proposes to resolve the angel tax issue for the startups

New Delhi: Finance Minister Nirmala Sitharaman Friday announced an exclusive television channel which is to be set up for startups, that will serve as a platform for discussing issues affecting their growth and match-making with venture capitalists. She also announced that the angel tax issue which haunts most of the startups, will be resolved. Presenting her maiden Budget for 2019-20,  in the Modi 2.0 government, she proposed to start a television programme exclusively for startups that will be executed by startups themselves. "This shall serve as a platform for promoting startups, discussing issues affecting their growth, match-making with venture capitalists and for funding and tax planning. This channel shall be designed and executed by startups themselves," she said. "Startups require, and, we have been consistent in providing, all the encouragement, and the startups in India are taking firm routes," she said. "To resolve the angel tax issue, the startup and the investor who file requisite declaration will not be subjected to any kind of scrutiny in respect of valuation of share premium," the FM announced. A mechanism of e-verification will be put in place and with this, the funds raised by startups will not require any tax scrutiny by the Income-Tax department. In addition special arrangements will be made for redressal of the grievances of the starups and no enquiry of verification should be carried out by the assessing officer without approval of senior authority. "At present startups are not required to justify fair market value of their shares issued to certain investors including category 1 alternative investment funds. I propose to extend this benefit to category 2 alternative investment funds also", she added.