New tax forms for venture capitalists |
After the union financial budget announcements, the startups could expect some more offerings in the coming days as the central government is working on another set of measures that could be rolled out soon to make it easier for them to do business in the country. A new set of tax return forms, aimed at saving angel investors and startups from any questioning by tax officers, is expected to be rolled out by September. According to sources, there would be modifications in the return forms, which will allow the system to check if the investment made in the startup is genuinely made by someone capable of making that kind of investment. The move is in line with the announcement on e-verification for angel investors in the budget. This will cut down any physical interface of startups and angel investors with tax authorities in the future. Tax experts say that collecting information via returns to establish the genuineness of the investment as well as the investor is the right approach. E-¬verification seeks to help establish the identity of the investor and source of his funds. Consequently, funds raised by startups will not require any kind of scrutiny by the income tax department.
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