PaisaDukan welcomes the widened definition of Start-ups

New Delhi, Feb 22 (KNN) PaisaDukan has welcomed the widened definition of start-ups announced by Union Minister of Commerce and Industry, Suresh Prabhu which brings breather for several start-ups that have received funds from Angel Investors or looking for funds.

"The notification eliminates a major obstacle and clarification would help several start-ups in avoiding potentially significant tax challenges faced by start-up and will allow them to focus on their core activities,” said Rajiv M Ranjan, Founder and CMD PaisaDukan

“However I would request government of India to relook the section 68 of Income Tax, that will broaden the reforms," added Ranjan.

The government of India recently announced the decision of easing the rules for start-up by announcing a string of exemptions which included the contentious and much debated issue of Angel Tax.

It was a much debated and a long demanding step.

Additionally, the widened definition of start-ups will also create business environment and will inspire new entrepreneurs to establish start-ups.

Simplification of the process for start-ups to get exemption on investment under section 56(2)(viib) of Income Tax Act, 1961 will help P2P lending industry which wasn't so attractive for VCs & Angle investors due to low volume and higher operational cost.

NBFC-P2P lending industry has also welcomed the announcement, said Ranjan (KNN/JM)