Taxation of Start-ups & Investors

This is a handy book for the taxation of start-ups & investors, including, but not limited to, the following:

Tax Holiday u/s 80-IAC of the Income-tax Act 1961
Angel Tax Exemption
All topics related to the taxation of start-ups & investors are discussed in light of the following:

Department for Promotion of Industry and Internal Trade (DPIIT) Guidelines
Inter-ministerial Board (IMB) Decisions made in IMB Meetings
Relevant Legal Provisions
Case Laws, including the landmark decision of Raw Pressery (P.) Ltd. vs ACIT [2022] 143 taxmann.com 158 (Mumbai-Trib.)
The Present Publication is the 6th Edition and has been amended by the Finance Act 2023. This book is authored by Taxmann’s Editorial Board with the following noteworthy features:

[Start-up Ready Reckoner] Eligibility Ready Reckoner for tax holiday u/s 80-IAC
Compliance Ready Reckoner for turnover-limit linked compliances/exemptions for the following entities:
Private Companies
Limited Liability Partnership
Traditional/General Partnership Firm
Tax Benefits available for DPIIT-recognised start-up private limited companies based on their turnover
[Tabular Format of Tax Holiday for Start-ups approved by IMB] in the following cases:
Grounds of Innovation
Grounds of Scalability
Grounds of Employment Generation or Wealth Creation
Grounds of Improvement in Products
[Detailed Analysis of Finance Act 2023 Amendments] including new provisions regarding taxation & TDS on winnings from online games
[Detailed Analysis with a Specific Focus] on the following topics:
Revised Guidelines for recognition of start-up
Process of IMB Certification for a tax holiday
Options of low tax rate regime u/s 115BAA/115BAB without tax holiday
Relative tax efficacy of various start-up entity forms, such as:
Registered Partnership Form
Limited Liability Partnerships
Private Limited Companies
One Person Company as a start-up entity form
[Case Studies] of acceptance/rejection by IMB of a start-up’s application for a tax holiday
[FAQs] are given at the start of the book
[Detailed Analysis of Difference between MSMEs and Start-ups] and benefits available under the MSMED Act, 2006
The detailed contents of the book are as follows:

What is a start-up?
Distinction between start-ups and MSMEs
What is the criteria for recognition of start-ups by DPIIT
Start-ups eligible for DPIIT – Recognition
OPC as a start-up entity
Innovation/scalable business model
Start-up entities not eligible for DPIIT recognition
Sole proprietorships – Whether eligible for DPIIT recognition
Entities formed as a result of amalgamations/mergers/demergers/absorption, whether eligible for DPIIT recognition
Entities formed as a result of compromise/arrangement – Whether eligible for DPIIT recognition
Holding & subsidiary companies – Whether eligible for DPIIT recognition
Joint Ventures – Whether eligible for DPIIT recognition
Entities incorporated outside India – Whether eligible for DPIIT recognition
Entities with foreign shareholding/stake – Whether eligible for DPIIT recognition
Entities formed by splitting up/reconstruction of an existing business – Whether eligible for DPIIT recognition
Entities incorporated with common director/DP/partner – Whether eligible for DPIIT recognition
Procedure for DPIIT – Recognition of start-up
Name change by DPIIT – Recognised start-up entity – Whether permitted
CIN/LLPIN change by DPIIT – Recognised start-up entity – Whether permitted
Conversion by a DPIIT – Recognised entity from one form to another – Whether permissible
Automatically ceasing to be a ‘start-up’ under LSN
Approvals needed by start-up entities for claiming tax benefits
Tax efficacy of different start-up entity forms – Firms, LLPs & Pvt. Companies
Tax holiday to start-ups under Section 80-IAC
Funding blues of private limited start-up companies
Exemption from ‘angel tax’ to private limited companies start-ups
Computation of FMV of shares issued when angel tax exemptions is not applicable
Conditions for carry forward or set-off of losses of start-up PLC under section 79
Deferring TDS or tax payment in respect of ESOP income of employees of eligible start-ups
Tax & TDS on winnings from online games
Mandatory acceptance of payments through prescribed electronic modes if turnover exceeds INR 50 crores – section 269SU
Taxation of investors exiting start-ups