{"id":4627,"date":"2017-05-08T17:46:56","date_gmt":"2017-05-08T17:46:56","guid":{"rendered":"https:\/\/sunkrish.com\/?p=4627"},"modified":"2017-05-12T17:48:20","modified_gmt":"2017-05-12T17:48:20","slug":"no-more-rejection-for-start-ups-seeking-tax-sops","status":"publish","type":"post","link":"https:\/\/sunkrish.com\/index.php\/2017\/05\/08\/no-more-rejection-for-start-ups-seeking-tax-sops\/","title":{"rendered":"No more rejection for start-ups seeking tax sops"},"content":{"rendered":"
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Companies will be given a chance to amend and re-submit proposals, says DIPP<\/em><\/figcaption><\/figure>\n

In what could be a morale booster for start-ups, the government has decided to do away with the practice of rejecting applications for tax sops.<\/p>\n

Instead, start-ups will get an opportunity to apply again after making changes to the proposal based on the explanation given to them on the initial one.<\/p>\n

Supportive policy<\/strong><\/p>\n

The Department of Industrial Policy and Promotion is also reworking the qualification criteria for start-ups for non-tax benefits, a government official told Business Line.<\/p>\n

\u201cInstead of dismissing proposals that do not meet the mark for tax-sops with a simple \u2018rejected\u2019, the inter-ministerial group examining it will give details of where they fell short. This will give the start-ups an opportunity to rework their proposals, and apply again for tax benefits,\u201d the official said. \u201cThere has been no change in the criteria of judging whether a start-up qualifies for tax benefits. It still depends on how innovative the idea is.\u201d<\/p>\n

In the last meeting of the Inter Ministerial Group (IMG) on startups which met on May 1, about a dozen applications were approved.<\/p>\n

The change in the Central government\u2019s stance has been triggered by a general sense of dissatisfaction among start-ups with the new policy, as only about 10 proposals had qualified for tax sops till last month out of the 140 proposals vetted by the inter-ministerial group since the policy was announced last year. \u201cThe DIPP has decided to be a bit more empathetic while dealing with start-ups. After all, what good are tax sops if very few are able to benefit from it,\u201d the official said. The 130 applicants for tax apps, who were rejected over the past year, will also get a detailed note on why their cases did not pass the test. As per the existing rules, start-ups (companies and Limited Liability Partnerships or LLPs) can get income tax exemption for three years in a block of seven years, if they are incorporated between April 1, 2016, and March 31, 2019.<\/p>\n

Expanding definition<\/strong><\/p>\n

An IMG, including officials from the Department of Bio-technology, Department of Science and Technology and the DIPP, examine the proposals on the basis of innovation and use, and determine whether they qualify for tax sops or not.<\/p>\n

\u201cAn official from the Ministry of Electronics, IT and Technology has been added to the IMG from May 1,\u201d the official said.<\/p>\n

The DIPP will come up with a new set of rules over the next few weeks, tweaking the definition of a start-up that will result in more companies and LLPs coming under in the category.<\/p>\n

Source: https:\/\/www.pressreader.com\/india\/the-hindu-business-line\/20170508\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In what could be a morale booster for start-ups, the government has decided to do away with the practice of rejecting applications for tax sops. Instead, start-ups will get an opportunity to apply again after making changes to the proposal … Continued<\/a><\/p>\n","protected":false},"author":1,"featured_media":3413,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,4,493],"tags":[666,298,305,455,291,521,301],"class_list":["post-4627","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-business-advisory-services","category-financial-corporate-services","category-economy-business-updates-corporate-affairs","tag-department-of-industrial-policy-and-promotion-dipp","tag-ease-of-doing-business","tag-economy","tag-income-tax","tag-make-in-india","tag-start-up-india","tag-start-ups"],"_links":{"self":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/4627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/comments?post=4627"}],"version-history":[{"count":3,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/4627\/revisions"}],"predecessor-version":[{"id":4630,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/4627\/revisions\/4630"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media\/3413"}],"wp:attachment":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media?parent=4627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/categories?post=4627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/tags?post=4627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}