'Budget provide ease of doing business to startups'

Gaurav Chadha,  Partner - Tax & Regulatory Services, EY India

By Gaurav Chadha
“The numerous amendments proposed by the Hon’ble Finance Minister in the Finance Bill 2019 and tax policy road map provided in the budget speech confirms government’s agenda of providing a conducive environment to start-ups and raising India’s ranking in ease of doing business index. Eligible start-ups can now carry forward of losses where shareholders beneficially continue to hold 51% shareholding or voting power. Period for the investment of capital gains tax in eligible start-ups has been extended from March 31, 2019, to March 31, 2021, also now only 25% investment in shareholding is sufficient to claim exemption.”

The author is Partner - Tax & Regulatory Services at EY India.

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