Assessment

2 Tax Planning Ideas for Startups : How to Issue Share on Premium Without Any Tax Affect !

Posted on by Prashant Thakur

Well, I wrote earlier that hon'ble Finance Minister, perhaps, forgot the one change in the Income Tax Act that may hinder the progress of Startup Scheme - the flagship program for generating jobs by Modiji. Please read One Startup Taxation Problem Still Left to Be Solved! Now after I read the Economic Times news article wherein lots of comments have comeup, I decided to publish this article, which will bring two fresh idea for stratups for generating fund without a taxation problems, especially the provision u/s 56(2)(viib) under which the excess of premium, which cannot be justfied be added as income from other sources. In a nutshell, this article will deal with following issues:

  1. Startups can issue shares on premium without limit and without any botheration. How?
  2. What are the special tax benefits ( hidden from public glare) for a certain class of investors in startups?

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Prashant Thakur

The author has spent twenty years with Income Tax department and desire to service common citizen of India which include professionals like tax practioners ,CA,ICMA, CS and tax lawyers by advising them on the direct tax matters for a very affordable fee.

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