Aspiring entrepreneurs often sell their residential properties to support their startup ventures and keep it moving. However, according to Income Tax Act of India, capital gain on transfer of house property results in a tax liability. Seeing this as one of the much needed reforms, the Department for Promotion of Industry and Internal Trade (DPIIT) has proposed relaxation — as part of ‘Startup India Vision 2024’ — in the income tax laws pertaining to sale of residential properties and carrying forward of losses, rreported Economic Times citing sources privy to the developments.
There exist a Section 54GB (w.e.f. 1st April, 2013), wherein capital gain on transfer of residential property not to be charged in certain cases that include — Relief from long-term capital gains tax on transfer of residential property and 2) If sale consideration invested in a manufacturing small or medium enterprise.
DPIIT has recommended amendments in Section 54GB and Section 79 (carry forward and set off of losses in case of certain companies) of the Income Tax Act in order to promote growth of budding entrepreneurs, who face difficulty in raising finances.
Prepared by the DPIIT for the new government, the proposal also includes setting up of 500 new startup incubators and accelerators by 2024, 100 innovation zones in urban local bodies and expanding CSR funding to incubators.
DPIIT also proposed to facilitate setting up of 50,000 new start-ups in the country by 2024 and creating 20 lakh direct and indirect employment opportunities.
Besides, DPIIT also suggested to deploy of entire corpus of Rs 10,000 crore Startup Fund of Funds announced in 2016 and yet to have a clarity on its disbursement after three years or so.
Like this content? Sign up for our daily newsletter to get latest updates.
This site uses Akismet to reduce spam. Learn how your comment data is processed.
We Dont Spam !