( from Burmese language : loosely translated as “ God has arrived “ )
For the Start Up eco-system , this could be paraphrased
as “ Prabhu has arrived
“
Only yesterday , Shri Suresh Prabhu posted many tweets
re the relaxation of rules / norms governing the Start Ups
Following news report provides the details :
Highlights :
- Startups with sales of up to ₹100 crore—earlier,
the exemption limit was ₹25 crore—would be eligible for angel tax relief
- An entity will be considered a
startup for up to 10
years from the date of incorporation, up from the earlier seven years
·
Under the new rules, startups will be kept out of
the purview of an anti-tax evasion provision in the Income Tax Act, 1961
=========================================================
Will this relaxation unshackle the Start Ups to create
millions of “ Self Employed “ ?
( - essential, considering
that neither the Private Sector , nor the Public Sector , nor the
Governments can create jobs for 12 million youth joining our
work-force, each year
)
What is the way out ?
I urge Shri Prabhu to consider my following suggestions
( earlier sent as E Mail to Cabinet Ministers , 3 years ago ) :
A NEW
ECONOMIC ORDER ? aka " Start Up Act - 2015 " [ 12 sept
2015 ]
# Objectives of the Act
Every year , to create 5
million Start Ups , each employing 2 persons , for a total of 10
million new jobs per year
#
Methodology
·
Instead of Companies Act - 1956 , these Start Ups will be
governed by the Start Up Act - 2015
·
A Start Up can be launched by any Indian citizen under the age
of 30 ( covering roughly 65 % of our population )
·
A Start Up will need to register online on the web site of the
Income Tax Department and obtain a unique " Start Up Number"
·
Although all Start Ups will need to file annual Income Tax
returns ( with full disclosure of income / expenses / profits / sources of
funds etc ) , it will not
be required to pay any Corporate Income Tax for the first 10 years of
its existence
·
A Start Up will be free to raise funds from any source (
Individuals / Companies / PE funds / VCs / Angel Investors / Religious Trusts
etc )
·
100 % FDI will be permitted
in Start Ups
·
A Start Up can receive loans or equity and be able to accept fixed deposits . It can
also give loans to individuals or other Start Ups or invest in other Start Ups
by way of equity
·
There will be no
restrictions on what interest ( on loans / FDs ) that a Start
Up may pay nor any restrictions on dividends it may declare
·
The dividends declared by Start Ups will not attract any Income Tax
·
As far as the persons / companies etc providing funds to Start
Ups ( by way of loans or equity ) is concerned , no questions will be asked re their source of
funds
=========================================================
Readers may want to look up following 25 Emails sent so far over the past 3 years to Cabinet Ministers :
=========================================================
Dear Shri Prabhuji,
Since I am also sending this mail to the Manifesto
committee of the Congress , BJP runs the risk of being “ also ran “ !
PS :
Incidentally – and refreshingly - Congress Committee
acknowledges every single emailed suggestion , whereas none ( out of over 1,000
emails ) of my emails to the Cabinet Ministers over the past 4 years , have been
acknowledged !
=========================================================
20 Feb 2019
Rsvp :
hcp@RecruitGuru.com
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