Startup Tax GAAR decision defers, Pranab Mukherjee said

GAAR is the General Anti Avoidance Rules which exposed to affect the VC’s, angel investors the majority has been delayed by Government for a year.

This is certain to bring happiness among the entrepreneurs. It was announced in the finance bill that backing of startups that could be one of the heads classified as an income and was assessable under (GAAR).

Finance Minister, Pranab Mukherjee, said in the yesterday Parliament that proposes to let off angel investments from the purview of the planned share premium tax. Also he said that any deliberation accepted by a closely held company in surplus of the fair market value of its shares would be chargeable tax which is announced in finance bill. Allowing for the concerns raised by ‘angel’ investors who spend in new companies, I propose to provide an enabling provision in the Income Tax Act for release to a notified class of investors. Definitely these proposals makes rejoice among entrepreneurs who decided to start a company.

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