The startup sector is happy that it has been acknowledged by political parties when Congress President Rahul Gandhi announced a slew of proposals for the industry in an interview on Thursday. If the Congress party is voted to power, Gandhi promised to remove the existing ‘angel tax’ imposed on start-ups. Angel tax is levied on investment in start-ups. Currently, angel tax is charged at a maximum rate of 30 per cent. Incidentally, it was introduced by UPA-II to curb black money. It has its origins in the Finance Act, 2012 piloted by the then finance minister Pranab Mukherjee.
Sanchit Gogia, chief analyst and CEO, Greyhound Research said while the intent is right, the execution of such schemes is the hard part. Businesses in India today need help with aspects like further simplification of the GST process – currently whether or not a business gets paid in time, it is expected to deposit GST within one month of raising the invoice, he said. This is a real struggle for SMBs that are perennially stretched on cash flow. Like TDS, GST can also be collected at source so that small businesses are shielded from the burden of paying GST from their pockets and in advance, Gogia added.
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
Have a question on this or other Technology & Innovation topics? Click here to set up an enquiry call with Sanchit Vir Gogia.
Copyright © 2019 Greyhound Research. All rights reserved. You may share this research note using the options made available. Please don’t copy this research note (complete or parts) and distribute over the web and emails. Connect with us if you need clarifications.