Beholder 2 beneficial effect how to#
Need to find out ways to see how to bring that cash into mainstream! In any case, meeting Mr. Man: I seem to have generated a lot of cash by sale of scrap from the factory and at the last count I guess I had about couple of crores. In this first part of this post, we look at the background that necessitated introduction of this provision, in a dramatised form.Īct 1, Scene 1– Somewhere in India, a man sitting in his office all by himself and thinking aloud The purpose of introducing section 56(2)(viib), as was spelt out by the then Hon’ble Finance Minister in his budget speech, was to deter generation and use of unaccounted money and one of the measures was to increase the onus of proof on closely held companies for funds received from shareholders and also taxing the share premium in excess of the fair market value of the shares. Pranab Mukherjee (later on President of India to ). This was a provision that was introduced in the year 2012, by the then Finance Minister Shri. The income-tax department’s demand on start-ups for tax on the share premium that they received during the Angel Round of funding, is from the provisions of section 56(2)(viib) of the Income-tax Act, 1961. This is a three part post, that connects the dots between Angel Tax, Demon(initisation), Company Strike Offs and the requirement of disclosing Ultimate Beneficial Owner (UBO) and at the Butterfly Effect the practices that were prevalent prior to `Angel Tax’ being introduced in the statue book.
As 2018 rides into sunset, pink papers have coined a new tax term - `Angel Tax’ and is abuzz with news and views as to how harsh it is on start-ups being sent notices by the Income-tax Department demanding taxes on the share premium that has been collected by them in the `Angel Round’ of funding received by them.
0 kommentar(er)
