TheRodinhoods

Proposed tax on Angel Investment by The Finance Ministry, Govt. of India

One, it is challenging enough to turn entrepreneur specially in a new media online space such as photographic content and technology. It involves a lot of mind-space which is constantly pre-occupied with various startup challenges one faces. Regular business operations, changing dynamics and the joy of building all rolled into one.  

I have been through it and to generate funds in a legitimate way via a clean and reliable source is governed by sheer luck and your determination to find the right business partner. I would consider myself very lucky to have found one of the most “generous, intelligent, sensitive and technology savvy ” angel ( who prefers to remain undisclosed at the moment ) in the truest sense of the word ! 

Now coming to the big question that has us worried. There was a proposal of  tax on Angel Investment by The Finance Ministry, Govt. of India, I am unclear if it is passed or has been deferred. It is a killer as for a small business, 30 per cent less money has a huge impact. Typically means impacting cashflow for 6-12 months and more… 

Fresh updates anyone please ? 

I had a chat with Alok on this and he advised that you, my fellow Rodinhooders, are the best guys to seek answers from ! 

Attaching a few links that I read and posted on our blog too.

https://www.thehindubusinessline.com/industry-and-economy/article3874596.ece?homepage=true&ref=wl_home

https://www.indeucapital.com/press/indian-deals/9046-govt-defers-gaar-to-exempt-proposed-tax-on-angel-investment

https://stockimagebank.wordpress.com/2012/09/10/tax-on-angel-investment-what-industry-watchers-say/