To help startups to move from the Innovators Growth Platform of stock exchanges to the mainboard for regular trading, regulator Sebi is planning a new set of norms to allow them to shift after one year of trading and expanding their shareholder base to at least 200. However, the regulator is of the view that if companies listed on the IGP are allowed to be traded in the regular category of mainboard without following stringent criteria, it may be misused to bypass the rigorous route of coming up with a mainboard IPO, officials said.

Publication: Economic Times

Date: August 9, 2019

The income tax (I-T) department has relaxed its assessment and scrutiny norms for start-ups. In a circular it directed its officers not to raise additional tax demands for start-ups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT). This will be done in cases where scrutiny is limited to Section 56 (2) (viib) of the Income Tax Act, or what is called in popular parlance angel tax. Angel tax refers to income tax payable on capital raised by unlisted firms by issuing shares where the share price is considered more than the fair market value.

Publication: Business Standard

Date: August 9, 2019

The Narendra Modi government has made tall claims pertaining to supporting the growth of small and medium businesses through startup-friendly policy making, and by prioritising the ease of doing business to a large extent. This is somewhat reflected in the Global Innovation Index 2019 (GII 2019), where India jumped five places this year to improve its position from 57th last year to 52nd. But are the lack of clarity and the red-tapism in some of India’s startup-related policy decisions also seriously harming businesses and businessmen? However, with Cafe Coffee Day founder VG Siddhartha having allegedly committed suicide citing harassments by income tax officials, ‘tax terrorism’ is back in the news.

Publication: Inc 42

Date: August 8, 2019

Swedish furniture manufacturing giant Ikea is completing its one year journey in India this week. The company started its venture by establishing a format store in Hyderabad exactly a year ago i.e. on 8th August 2018. The store in Hyderabad was the first of 25 stores Ikea planned to open across India. The startup is already localizing its strategies and as part of the major plan to set up five-six smaller format stores in Mumbai, it is now scouting for locations in ‘The City of Dreams’. These smaller outlets would range from 50,000 – 150,000 square feet which is a digression from its flagship store stretch

Publication : Silicon India

Date : August 8, 2019

As for the third category of notices, which were served on start-ups not recognised by DPIIT and are concerned with multiple sections of the law including angel tax, the AO will proceed only after a nod from supervisory officer, the CBDT said. In what would bring clarity to the start-ups that have been served with notices by the income-tax department under the so-called angel tax provision, the Central Board of Direct Taxes on Thursday said the department would ‘summarily accept’ contention of start-ups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), if the notices pertained only to the angel tax section.

Publication: Financial Express

Date: August 9, 2019