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: Updates
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
TDS on Salary – You can choose between Old tax & New tax regimes
It is clarified by Income tax department (via Circular no. 4 dated Apr 5, 2023) that employee can choose either old tax or new tax regime for the purpose of TDS deduction on his salary and employer should follow accordingly. In case employee does not intimate his choice, employer shall follow New tax regime for … Continue reading TDS on Salary – You can choose between Old tax & New tax regimes
Startup Founders and Investors – Be cautious of private placements via crowdfunding platforms
On March 1, MCA - RoC Delhi imposed penalties on two startups (refer Order 1 and Order 2) which had raised funds via private placement of Compulsorily Convertible Debentures (CCDs) on a popular fintech platform in violation of Companies Act, 2013. The key rules violated by these startups are: Sec. 42(7) which states that no company issuing … Continue reading Startup Founders and Investors – Be cautious of private placements via crowdfunding platforms
Income Tax Proposals – Budget 2023
Individuals: No changes in old tax regime Changes in New tax regime: Income tax slabs were changed (see below table). Limit for 100% Rebate on Income tax is enhanced from 5 lac to 7 lac. Standard deduction for salary (50K) and family pension (15K) can be claimed henceforth. Scope of assesses eligible for new tax … Continue reading Income Tax Proposals – Budget 2023
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