As per Finance Act, 2023, where a private company* issues shares (equity or preference) to non-resident investors** in excess of FMV, such excess consideration is taxable in the hands of private company under the head 'Income from other sources'. Now CBDT notified below investor types as exempt from this angel tax scope.- Government and Government related … Continue reading Non-residents exempt from Angel tax
Tag: SME
Fast track mergers involving Startups or Small companies to be approved by MCA within 60 days
According to Section 233 of the Companies Act 2013, fast track merger is a simplified and speedy process for effecting mergers and amalgamations by certain classes of companies* without the involvement of NCLT. As part of process, ROC and Official liquidator have to raise objection/suggestion, if any, to the merger scheme with 30 days (from the date … Continue reading Fast track mergers involving Startups or Small companies to be approved by MCA within 60 days
MSME benefits to continue for 3 yrs post reclassification
At present MSMEs engaged in manufacturing and services (having Udyam registration) are eligible for various benefits*. Classification of an enterprise into Micro or small or medium category is determined based on level of a) investment in plant and machinery or equipment (other than land and building, furniture and fittings) & b) domestic turnover (i.e. excluding exports) **. For … Continue reading MSME benefits to continue for 3 yrs post reclassification
Small company’s turnover and paid-up capital thresholds are increased
With effect from 15-09-2022, MCA revised definition of Small Company as a company whose turnover is <= 40cr and paid-up capital <=4cr (for the immediately preceding FY). Few benefits/exemptions available to Small Companies under Companies Act, 2013 are: No need to prepare cash flow statement as part of financial statement - Sec. 2(40) Advantage of … Continue reading Small company’s turnover and paid-up capital thresholds are increased