Description
Taxmann Publications Taxation of Start-ups & Investors 5th Edition 2022 by Taxmann
This is a handy book for the taxation of start-ups & investors, including, but not limited to the following:
Tax Holiday u/s 80-IAC of the Income-tax Act 1961
Angel Tax Exemption
All topics related to the taxation of start-ups & investors are discussed in light of the following:
Department for Promotion of Industry and Internal Trade (DPIIT) Guidelines
Inter-ministerial Board (IMB) Decisions made in IMB Meetings
Relevant Legal Provisions
Case Laws
The Present Publication is the 5th Edition, authored by Taxmann's Editorial Board. This book is updated by the Finance Act 2022, with the following noteworthy features:
[Start-up Ready Reckoner]
Eligibility Ready Reckoner for tax holiday u/s 80-IAC
Compliance Ready Reckoner for turnover-limit linked compliances/exemptions for the following entities:
Private Companies
Limited Liability Partnership
Traditional/General Partnership Firm
Tax Benefits available for DPIIT recognised start-up private limited companies based on their turnover
[Tabular Format of Tax Holiday for Start-ups approved by IMB] in the following cases:
Grounds of Innovation
Grounds of Scalability
Grounds of Employment Generation or Wealth Creation
Grounds of Improvement in Products
[Detailed Analysis of Finance Act 2022 Amendments] on discharging additional onus on loans/borrowings credited in books
[Detailed Analysis with a Specific Focus] on the following topics:
Revised Guidelines for recognition of start-up
Process of IMB Certification for a tax holiday
Options of low tax rate regime u/s 115BAA/115BAB without tax holiday
Relative tax efficacy of various start-up entity forms, such as:
Registered Partnership Form
Limited Liability Partnerships
Private Limited Companies
One Person Company as a start-up entity form
Dispute Resolution Scheme for small/medium taxpayers
Taxability of investors and eligibility under section 54GB with practical examples
[Case Studies] of acceptance/rejection by IMB of a start-up's application for a tax holiday
[FAQs] are given at the start of the book
[Detailed Analysis of Difference between MSMEs and Start-ups] and benefits available under the MSMED Act, 2006
The detailed contents of the book are as follows:
What are a start-ups
Distinction between start-ups and MSMEs
What is the criteria for recognition of start-ups by DPIIT
Start-ups eligible for DPIIT-Recognition
OPC as a start-up entity
Innovation/scalable business model
Start-up entities not eligible for DPIIT recognition
Sole proprietorships – whether eligible for DPIIT recognition
Entities formed as a result of amalgamations/mergers/demergers/absorption whether eligible for DPIIT recognition
Entities formed as a result of compromise/arrangement – whether eligible for DPIIT recognition
Holding & subsidiary companies – whether eligible for DPIIT recognition
Joint Ventures – whether eligible for DPIIT recognition
Entities incorporated outside India – whether eligible for DPIIT recognition
Entities with foreign shareholding/stake – whether eligible for DPIIT recognition
Entities formed by splitting up/reconstruction of an existing business – whether eligible for DPIIT recognition
Entities incorporate with common director/DP/partner – whether eligible for DPIIT recognition
Procedure for DPIIT-recognition of start-up
Name change by DPIIT-recognized start-up entity – whether permitted
CIN/LLPIN change by DPIIT-recognized start-up entity – whether permitted
Conversion by a DPIIT-recognized entity from one form to another – whether permissible
Automatically ceasing to be a 'start-up' under LSN
Approvals needed by start-up entity for claiming tax benefits
Tax efficacy of different start-up entity forms – firms, LLPs & Pvt. Companies
Tax holiday to start-ups under Section 80-IAC
Funding blues of private limited start-up companies
Tax implication of funding a start-up by investing in it money from the sale of the residential property invested in the start-up – Section 54GB
Exemption from 'angel tax' to private limited companies start-ups
Computation of FMV of shares issued when angel tax exemptions is not applicable
Conditions for carry forward or set-off of losses of start-up PLC under section 79
Deferring TDS or tax payment in respect of ESOP income of employees of eligible start-ups
Mandatory acceptance of payments through prescribed electronic modes if turnover exceeds INR 50 crores – section 269SU
Constitution of dispute resolution committee for small and medium taxpayers
Taxation of investors exiting start-ups
Tax on reconstitution of firms/LLPs