Adani Group Records ₹74,945 Crore ($8.23B) Tax Contribution in FY25

The Adani Group has reported a record tax contribution of ₹74,945 crore in FY25, marking a 29% increase from the previous year’s ₹58,104 crore.

Breakdown of Contributions

• Direct taxes: ₹28,720 crore
• Indirect taxes: ₹45,407 crore
• Other contributions: ₹818 crore

Context & Scale

• This amount is roughly equivalent to the cost of building the entire Mumbai Metro network, underscoring the scale of the Group’s contribution.
• Major contributors within the conglomerate include Adani Enterprises, Adani Cement, and Adani Ports & SEZ (APSEZ).

This surge reflects both the expansion of Adani’s businesses and stronger profitability across its portfolio.

Adani Group has also published a document titled ‘Basis of Preparation and Approach to Tax’ on the websites of its seven entities, which provides a complete breakdown of Adani Group’s global tax and other contributions.

Crypto Tax Collections Jump 41%; Maharashtra, Karnataka on Top

India’s crypto TDS collections surged 41% in FY25, reaching ₹511.83 crore, with Maharashtra and Karnataka leading the contributions. Maharashtra-based exchanges accounted for ₹293.40 crore, while Karnataka followed with ₹133.94 crore, said a report by Hindustan Times, citing official data from the Finance Ministry.

India’s crypto TDS collected in the previous financial year (FY24) was ₹362.70 crore. For context, FY25 rose to ₹511.83 crore, a 41% jump, under the 1% TDS on VDA transfers (Section 194S) effective since July 1, 2022.

Virtual Digital Asset (VDA) transfers refer to the buying, selling, or exchanging of digital assets such as cryptocurrencies and NFTs. In India, these transfers are subject to a 30% tax on profits and a 1% TDS deduction on each transaction.

Key Highlights of Crypto TDS Surge

• Total TDS collected (FY25): ₹511.83 crore, up from ₹362.70 crore in FY24 — a 41% increase.
• Top contributors by state (exchange base):
  • Maharashtra: ₹293.40 crore (+30.6%)
  • Karnataka: ₹133.94 crore (+63.4%)
  • Gujarat: ₹28.63 crore (slight decline of 2.3%)
  • Delhi: ₹28.33 crore (sharp rise from previous year)
• Policy background: Since July 1, 2022, India mandates a 1% TDS on all crypto/virtual digital asset (VDA) transfers under Section 194S of the Income Tax Act.
• Purpose: Designed to track crypto transactions in real time and curb tax evasion.

Why This Matters

• Government oversight strengthened: The surge reflects tighter monitoring of crypto activity and compliance by exchanges.
• Regional dominance: Maharashtra and Karnataka’s lead highlights their role as crypto exchange hubs.
• Investor impact: The 1% TDS rule has been criticized for reducing liquidity in crypto markets, but it ensures greater transparency for regulators.
• Tax enforcement trend: Authorities have also acted against exchanges for GST evasion and issued notices to tens of thousands of investors.

Risks & Trade-offs

• Liquidity drain: The 1% TDS on every transaction discourages frequent trading, especially for retail investors.
• Compliance burden: Exchanges must maintain detailed transaction records, increasing operational costs.
• Market shift: Some traders may move to offshore or decentralized platforms to avoid TDS, raising enforcement challenges.
• Regulatory uncertainty: India still lacks a comprehensive crypto regulatory framework, leaving investors exposed to volatility and legal ambiguity.

Strategic Takeaway

• The 41% surge in crypto TDS collections signals that India’s tax authorities are successfully tightening their grip on digital asset transactions.
• For investors and exchanges, this means higher compliance costs but also clearer government oversight.
• Maharashtra and Karnataka’s dominance underscores their position as crypto infrastructure centers, shaping India’s evolving digital asset landscape.

Who Can Claim Tax Deduction Under Section 80CCC?

How many of us look forward to a pension after our retirement? For almost all of us, the fear of what the future might hold or if we would have a source of income to rely on is prevalent everywhere. These are also not the days when only government employees have the chance to get a pension - everyone can, as long as we invest in pension schemes.

But did you also know that certain pension funds have the option for tax deduction? That is what we are going to be talking about over here - Section 80CCC.

What is the Meaning of Section 80CCC?

Individuals can claim tax exemptions under Section 80CCC of the Income Tax Act of 1961 for contributions made to designated pension schemes. Individuals can deduct up to Rs.150,000 when purchasing public insurance coverage or renewing an existing policy.

For example, when acquiring a life insurance policy from LIC or other comparable public insurance organizations, one might claim deductions. Section 10 also provides for deductions against periodic annuities (23AAB). However, the pension amount and any bonus or interest accumulated on this annuity will be taxable in the year of receipt.

Individuals should review the provisions of Section 80CCC of the Income Tax Act. It is included together with the rules in sections 80CCD and 80C.

As a result - it is also critical to read the terms associated with this part on the official website. Additionally, taxpayers must verify the eligibility conditions to expedite the filling process.

The Conditions of Section 80CCC

The following are the terms and conditions of the Act:

• Individuals who have deducted the cost of renewing or purchasing a life insurance policy from their taxable income are eligible.
• The policy money should be paid out according to Section 10 (23AAB) from the accrued funds.
• If any bonuses or interest are received, they are not deductible under 80CCC income tax.
• Any income received from the policy as a monthly pension is subject to taxes at the current rates.
• If the policy is relinquished, the sum will be taxed as well.
• Section 88 prohibits the use of any refunds available on investments in annuity plans prior to April 2006.
• Any funds deposited prior to April 2006 are not deductible.

Who is Eligible for the Tax Deduction Under Section 80CCC?

The following are the eligibility criteria for claiming deductions under Section 80CCC.

• The deduction is available to everyone who has purchased or subscribed to an annuity plan. This plan must be provided by a public insurance company or one approved under this provision.
• The deductions are available to both Indian residents and non-resident Indians.
• Section 80CCC does not apply to Hindu Undivided Families (HUFs).
• Individuals must consider issues such as -
• Avoid abandoning the annuity plan in its entirety or in parts.
• Choosing insurance coverage without a pension.
• Choosing a pension plan that extends income after maturity.
• The Insurance Regulatory and the Development Authority of India have authorized the policy.

Who Cannot Claim for a Deduction Under Section 80CCC?

1. If you get any money for surrendering the policy, you must pay taxes on it based on the preceding year.
2. If you received interest or a bonus from the policy, you are not eligible for a deduction for that amount. Except for these bonuses, the deduction will be allowed.
3. You could not claim the deduction if you made contributions prior to 2006.

How to Claim the Deduction?

Individuals can file their taxes after investing the money in accordance with Section 80CCC. For tax filing, they must go to the official Income Tax website.

They can only claim tax breaks on the amount invested, not on the interest or bonus. According to the government, the 80CCC deduction maximum is up to Rs. 150,000 per year. However, a taxpayer must meet the eligibility criteria and terms outlined in this section.

The Relationship Between Section 80CCC and 10 (23AAB)

Section 10 (23AAB) requirements are inextricably related to Section 80CCC. It refers to the income generated by a fund established by a recognized insurer, such as the LIC.

The fund must have been established as a pension system prior to August 1996. The taxpayer's contributions to the policy must have been made with the goal of generating pension income in the future.

What is the Difference Between Section 80CCC and Section 80C?

There are two significant distinctions between Section 80C and Section 80CCC. They are as follows-

The claimed deduction amount can also be obtained from the non-taxable portion of the income. However, under Section 80CCC of the Income Tax Act, the payment paid to the pension fund must be made from taxable income in order to qualify for the tax benefits.

Another significant distinction between Section 80C and 80CCC is that 80C provides a variety of tax deductions, whereas 80CC is limited to the pension fund or annuity contributions.

Get Back Your Investment Taxes in Pension Funds

The sum invested in the pension fund is returned to the taxpayer as a monthly pension after a predetermined period of time. If the taxpayer surrenders the policy, the amount invested will be returned to him with interest.

When the taxpayer or nominee surrenders the policy, the amount previously claimed as a deduction under Section 80CCC becomes taxable at the time of receipt according to the taxpayer's income tax slabs for the year in which the amount is received. The same is true for the amount received as an annuity.

Conclusion

Section 80CCC of the Income Tax Act was enacted to encourage people to invest in pension funds and financially safeguard their future. It is available not only to Indian residents but also to non-resident individuals who contribute to pension funds. It is quite beneficial and protects your financial future. There are a lot of other provisions in this Act, and you can get going one at a time when you start your research tax deductions and savings.

I-T Deptt. To Launch Free Software, Mobile App for ITR Preparation

The Income Tax Department will launch its new e-filing portal www.incometax.gov.in on Monday, June 7, 2021. The new e-filing portal is aimed at providing taxpayer convenience and a modern, seamless experience to taxpayers, said the Ministry of Finance in a statement.

Also a free of cost ITR preparation software will be available with interactive questions on the new system to help taxpayers for ITRs 1, 4 (online and offline) and ITR 2 (offline) to begin with; Facility for preparation of ITRs 3, 5, 6, 7 will be made available shortly, said the I-T department.

Stay tuned!#NewPortal #eFiling pic.twitter.com/8x1iUK0CZc

— Income Tax India (@IncomeTaxIndia) June 6, 2021

All interactions and uploads or pending actions will be displayed on a single dashboard for follow-up action by the taxpayer on the new portal.

The new customer-friendly web-portal integrated with immediate processing of Income Tax Returns (ITRs) will facilitate faster refunds for taxpayers, it added.

Taxpayers will be able to proactively update their profile to provide certain details of income including salary, house property, business, profession which will be used in pre-filling their ITR.

Detailed enablement of pre-filling with salary income, interest, dividend and capital gains will be available after TDS and SFT statements are uploaded (due date is June 30, 2021). The new system will also include a new call center for taxpayer assistance for prompt response to taxpayer queries. Detailed FAQs, User Manuals, Videos and chatbot/live agent also provided.

Functionalities for filing Income Tax Forms, Add tax professionals, submit responses to notices in faceless scrutiny or Appeals would be made available.

The new tax payment system will be launched on June 18th, 2021 after the advance tax instalment date to avoid any taxpayer inconvenience. The mobile app will also be released subsequent to the initial launch of the portal, to enable taxpayers to get familiar with the various features. 

Familiarization with the new system may take some time, so, the I-T Department requests the patience of all taxpayers/stakeholders for the initial period after the launch of the new portal and while other functionalities get released since this is a major transition. This is another initiative by CBDT towards providing ease of compliance to its taxpayers and other stakeholders.

Tax2win to Help Millions of Frontline Healthcare Workers in India with Free E-Filing of Income Tax Returns

The outburst of Covid-19 has triggered struggle for everyone and forced the government to extend ITR filing deadline. With the pandemic’s cases on a consistent rise in India, millions of frontline healthcare workers have doubled their efforts in the need of the hour to help the nation stand back on its feet. They are putting in their heart and soul to ensure that the families stay healthy. Be it long working hours in the uncomfortable PPE kits or attending spontaneously to the new patients of Covid-19, they are there when and where needed.

Tax2win have been following up on the selfless service that these frontline healthcare professionals are providing to fight coronavirus, so that common people like us can stay safe at home. Their selfless sacrifices are praiseworthy and courage, unmatched. They are no less than superheroes who save lives.

While these frontline workers are fighting lot of battles every day, Tax2win- India’s fastest growing e-filing & tax saving platform has introduced its own innovative way to thank these frontline workers i.e. by launching a new initiative ‘Cure Your ITR With eCA’s’. Under this, Tax2win will file their income tax returns free of cost online without making unnecessary office visits.

“We have been thinking of a way to care for these caregivers by taking their tax filing burden off to make this time less stressful for them, and therefore we are very happy to announce the ‘Cure Your ITR With eCA’s’ - an expert-led virtual tax return filing initiative for frontline healthcare workers under which we'll be providing them with a 100% free digital Tax Filing Assistance from the comfort of their home or workplace. We salute their efforts with this small helping gesture,” says CA Abhishek Soni, Co-Founder, Tax2win.

This initiative is truly an innovative thinking to care for these caregivers by taking their tax filing burden off to make this time less stressful for them.

To ease your tax filing burden, here are the steps to follow:

1. Visit https://tax2win.in/p/thanks-frontliners & Signup to get started


2. Upload Documents Digitally - No office visits required, just upload the specified documents on portal and it is good to go.


3. Review & Contact - Experienced professional will thoroughly go through your documents. Further, eCA will call you to understand your income, investment & deductions to help you get maximum refunds.


4. Approval & Filing - After addressing your doubts or questions (if any), Tax2win will file your income tax return for you.

Needless to mention, the ITR filing assistance will be provided online over Email/ Call, without any physical meetings or visits. It is a paperless practise specially curated for healthcare frontliners to save them from the hassles of ITR filing. Not only will this address safety, but it will also save the valuable time of our hardworking healthcare workers.

Dr. Rajshree Rathore, from Jaipur says:

Tax2win eCA’s focus on filing accurate returns, avail maximum deductions and getting maximum tax refunds. Tax2win has made Online Tax Filing super easy!

Tiger Global's Sale of Flipkart Stake - AAR Rejects Application for Tax Exemption from Payment of Capital Gains

In 2018, Tiger Global sold its stake in Flipkart to Walmart, the private equity firm has been hauled up for failure to pay tax on profit arising out of the sale. Further, the Authority for Advance Rulings (AAR) has rejected the application by Tiger Global to avail zero withholding tax on capital gains from the deal.

The US-based PE firm can now approach the high court and appeal against the AAR's judgement, or the I-T Appellate Tribunal, said the report.

It is to be noted that the AAR report does not mention Tiger Global, though it does specify ₹14,500 crore exit.

According to Economics Times, while most of Tiger Global shares in Flipkart were from its Mauritius entity, it also held stake from its Singapore-based entity. Meanwhile, the first backer of Flipkart – Venture Capital firm Accel (formerly Accel Partners) too had invested in Flipkart through its Mauritius subsidiary.

Tiger Global maintained that since the shares of the Singapore company derived their value primarily from assets located in India, it can derive benefits under Article 13 (4) of India – Mauritius Treaty. However, AAR ruled that the shares transferred were not of an Indian company and therefore the applicant is not eligible for the benefits.

In 2018, Walmart had bought 77% stake in Flipkart in a $16 billion deal. Tiger Global, one of the earliest backers of Flipkart and held a 22% stake, had sold 17% stake in the company for ₹14,500 crore.

The AAR noted that Tiger Global had set up a Mauritius entity only to derive benefits from the deal and avoid tax using the India-Mauritius Double Tax Avoidance Agreement (DTAA), and that the “head and brain” of the company was still based in the US and not in Mauritius.

COVID-19: Nasscom Urges Govt to Defer Tax Payment, Return Filing for Startups, MSMEs

Industry body Nasscom has urged the government to suspend all deadlines, including for tax payment and return filing, until four weeks post lifting of the lockdown to provide relief to startups and SMEs.

To contain the spread of COVID-19, the government has announced a 21-day nationwide lockdown starting March 26.

"The COVID-19 pandemic has caused high stress on startups, putting their continuity at risk. They are looking to government to provide support and relief..." Nasscom said in a statement.

The industry body said startups are facing severe time loss and project delays due to the prevailing circumstances that has contributed to financial pressure on them.

"We request that the government consider rental subsidy for workspaces used by startups which are regulated/owned/managed by government agencies," it added.

The body also requested for a "blanket suspension of all deadlines including tax payment deadlines and filing deadlines until at least four weeks post lifting of all city lockdown".

These include relaxation of deadline to file Foreign Inward Remittance Certificate (FIRC), option to avail overdraft facility/interest free and equity convertible funding, waiver of fines/penalties for offences violations related to procedural matters, extension of due date for payment of advance tax, and waiver of restrictions for claiming an expense as a deduction under Section 40 of the IT Act.

Nasscom suggested that payment of provident fund and gratuity deposits should be deferred for the duration of the lockdown, and provide an option to employees for a one-time PF opt-out option for the next financial year 2020-21 given that startups are unlikely to be able to provide any salary increments due to subdued business environment.

"In such a case, both the employee and employer contributions towards the PF may be transferred directly to the employee. This will result in an increase in the take home pay of the employees. This move will be beneficial for the employees in the lower salary bracket and would lead to a higher take home pay for a majority of the start-up workforce," it said.

Nasscom also sought deferral of interest payment deadlines and relaxation of loan interest payments. Besides, it suggested that governments and PSUs be encouraged to procure Make-in-India software products, and incentives/sops for consumption of indigenous products.

For MSMEs, Nasscom said interest and penalties should be waived for delayed payments of TDS and GST due for the month of March, April and May 2020 if such payment is made by June 30, 2020.

"The working capital of MSME businesses is already stressed and the pandemic has further aggravated the situation. As an immediate relief, all government departments (Centre/State)/PSUs/large corporations must be directed to release all pending payments/invoice receivables raised by the MSMEs within 15 working days," it added.

The body recommended that separate credit lines be given to MSMEs for handling global recessions.

"To minimise the impact of the pandemic and ensure minimum disruption in supply chain, government must ensure adequate credit flow to the MSMEs (small and medium enterprises)," it noted.

Therefore, it must be ensured that the existing Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is accelerated with the Turn Around Time (TAT) of issuance of funds by SIDBI reduced to 7 working days, it added. PTI SR

Income Tax Dept to Use Data Mining to Increase Tax Mop Up: Revenue Secy

The Income Tax Department will use data mining and risk profiling rather than intrusive methods for tax collection, Revenue Secretary Ajay Bhushan Pandey said on Wednesday while exuding confidence of achieving the direct tax mop-up target for the current fiscal. Data mining is defined as a process used to extract usable data from a larger set of any raw data. It implies analyzing data patterns in large batches of data using one or more software.

In the 2019-20 Budget, the government has set a direct tax collection target of Rs 13.35 lakh crore, which includes Rs 7.66 lakh crore being collected as corporate taxes and Rs 5.69 lakh crore as income tax.

As per the revised estimates for 2018-19, the government collected Rs 12 lakh crore from direct taxes, of which Rs 6.71 lakh crore was from corporate taxes and Rs 5.29 lakh crore from income tax.

"The direct tax collection has been growing on an average double digit in last 5-6 years which is commendable. I am confident the department will achieve the budget target set for this fiscal.

"We will use data mining, risk profiling and risk assessment rather than intrusive methods. Today we commit to end the fear of notices and scrutiny which can be achieved only through randomised faceless assessment and verification," Pandey said while addressing tax officers at the 159th Income Tax Day event here.

Income tax was introduced for the first time in India on July 24, 1860, by James Wilson to compensate for the losses incurred by the British regime during the first war of independence against British rule.

Pandey said the tax administration has undergone significant changes in recent years and the role of tax officers has changed from tax enforcers to that of a tax facilitator. "Earlier we used to hear complaints of tax administration enforcing laws and many times threat of coercion. Today, it is working to facilitate compliance by creating atmosphere conducive to voluntary payment and discouraging tax evasion by credible and non-intrusive use of technology," Pandey said.

He said the number of persons filing income tax returns has gone up from 3.31 crore to 6.5 crore in the last five years and more than 99 per cent ITRs are being filed electronically.

"There is also scope to bring more persons under tax net and widen tax base. In a vast, populous and diverse country like ours, the widening of tax base requires effective utilisation of resources of manpower, infrastructure and communication. The department should constantly improve its infrastructure and upgrade the skill of manpower," he said.

Speaking at the event, Minister of State for Finance Anurag Thakur said it is the need of the hour that the role of the tax department and its officials changes from tax enforcement to tax facilitators.

The challenge before the Indian economy and the government is to curb the menace of black money and the I-T department has a major role to play in this, he added.

"I expect the I-T department will take up the challenge and with the help of information available, the I-T department will take demonstrative action against tax evaders. "Therefore, on one hand there is need to create awareness regarding generation of black money and on other hand taking severe actions against offenders. It is required from the I-T department that their action should give a message to the evaders that they should be ready to face consequences of tax evasion," Thakur said.

In Assessment Year 2018-19, there were as many as 8.44 crore taxpayers, which included persons who filed ITR as well as those who did not file a return of income but in whose case tax had been deducted at source during financial year 2017-18.

The government has set a target of adding 1.3 crore income tax filers in the current financial year against 1.1 crore new filers added last year. PTI JD

5 Things for Self Employed to Know When Filing Taxes

When you are self-employed, meaning that you have you own business that you run solely or own property that you rent or hire at a fee, you need to know about how to file your taxes. Filling taxes can be very complex at first but with the proper guidance, it will be easy to file the taxes and ensure that you are always updated. The procedure has been easily elaborated step by step and thanks to technology, you can do it at the comfort of your home. Technology has made things easy and faster but it also has it cons as you can be easily hacked and all your important details taken. It is for this reason that it is smart to do things like tax filling at home or using a secure network rather than a public Wi-Fi. With these precaution taken into consideration, here are some of the things you should know about filling your taxes when self-employed:

• There is a bonus that comes with being self-employed. When you are filling your taxes, it is important to mention that you are self-employed. The rates may be the same when filling but for clarity purposes and a bonus, you need to mention that you are self-employed. The bonus is to motivate small business owners to continue with what they are doing and even maybe expand to ensure that the economy grows all together. The motivation has worked for many as you get to save a lot with clean tax reports.

• Redeem free coupons. When you are filling your tax as a self-employed entrepreneur, there are free coupons issued that are easy to get and deduct your amount by a considerable amount that you can save. The coupons range from $5 to $15. This is a good amount reduced from your tax burden that goes into savings account. Filling your tax returns early is an assured guarantee of high amount on the coupon.

• Fill in a service code. A service code is another advantage that one gets when filling taxes and he or she is self-employed. The service code will help reduce the amount and the saved amount goes to savings. The service code is easy to fill as it is a simple procedure. The procedure is in major tax filling website listed here such as mighty taxes and turbo taxes.

• Get discounts. When you are filling your taxes, as self- employed there are so many discounts in the market that you need to be aware of and actually fill them out. The discounts are available in the tax return website under the self-employed category. You should not ignore the discounts no matter how small they may seem. They are valid and makes a big difference on a large scale.

• There are penalties on failure of filling your taxes. It is wrong and also unpatriotic not to fill your tax returns especially when you are self-employed. You need to practice good citizenship and file your taxes and in time. Late filling has so many disadvantages such as lack discounts or bonus.

 

You should be faithful in filling your tax returns and make sure you utilize on the available benefits offered.

A Brief Guide on Trade Credit Insurance [Infographic]

Trade credit insurance, also known as business credit insurance or credit insurance, is an insurance policy and a risk management product offered by private insurance companies and governmental export credit agencies to business entities wishing to protect their accounts receivable from loss due to credit risks such as protracted default, insolvency or bankruptcy, says the definition of Trade Credit Insurance, according to Wikipedia.

Trade credit insurance protects your business against both commercial and political risks that are beyond your control. It improves the quality of your business and helps you to grow profitably, minimizing the risk of sudden or unexpected customer insolvencies. Credit insurance gives you the confidence to extend trade credit to new customers. It also improves access to funding, often at more competitive rates.

The Trade Credit Insurance (TCI) is an important tool for companies to protect their cashflow against non-payment by their buyers, thus allowing them to acquire new customers with greater confidence.

To get protection from non-payment of debts, it is essential to buy trade credit insurance. The insurance policy becomes active if your client doesn’t pay on time or delay the payment. Here is the infographic to help you understand trade credit insurance policy.eir buyers, thus allowing them to acquire new customers with greater confidence.

To get protection from non-payment of debts, it is essential to buy trade credit insurance. The insurance policy becomes active if your client doesn’t pay on time or delay the payment. Here is the infographic (via - SecureNow) to help you understand trade credit insurance policy.

A Brief Guide on Trade Credit Insurance [Infographic]

Trade credit insurance, also known as business credit insurance or credit insurance, is an insurance policy and a risk management product offered by private insurance companies and governmental export credit agencies to business entities wishing to protect their accounts receivable from loss due to credit risks such as protracted default, insolvency or bankruptcy, says the definition of Trade Credit Insurance, according to Wikipedia.

Trade credit insurance protects your business against both commercial and political risks that are beyond your control. It improves the quality of your business and helps you to grow profitably, minimizing the risk of sudden or unexpected customer insolvencies. Credit insurance gives you the confidence to extend trade credit to new customers. It also improves access to funding, often at more competitive rates.

The Trade Credit Insurance (TCI) is an important tool for companies to protect their cashflow against non-payment by their buyers, thus allowing them to acquire new customers with greater confidence.

To get protection from non-payment of debts, it is essential to buy trade credit insurance. The insurance policy becomes active if your client doesn’t pay on time or delay the payment. Here is the infographic to help you understand trade credit insurance policy.eir buyers, thus allowing them to acquire new customers with greater confidence.

To get protection from non-payment of debts, it is essential to buy trade credit insurance. The insurance policy becomes active if your client doesn’t pay on time or delay the payment. Here is the infographic (via - SecureNow) to help you understand trade credit insurance policy.

Govt To Remove Tax Hurdles For Angel Funding In Startups

In the start of fresh new year of 2018, government is condering removing tax hurdles for angel investment in startups.

Till now, startups receiving funding from angel investors are being levied Angel Tax -- 30% tax as income from other sources -- which in fact is hurting the Indian startups' funding for last one and half year and even slow down the investment in startups.

The continous complaint from Indian startup ecosystem has now forced Department of Industrial Policy and Promotion (DIPP) to take this tax regime confusion issue with SEBI and reconsider or relax some of the rules that is causing fall in funding of early age startups in India.

In addition, the issue of tax rules has also been taken up with the finance ministry, amid indications that the concerns may be addressed in the Budget at a time when the government is keen to revive investments in the economy and spur job creation.

The above development was first reported in Times of India.

Although, in June 2016, the Central Board of Direct Taxes (CBDT) said capital raised by startups from domestic angel investors will not be taxed as income even if the investment was more than the fair market value of the shares. It however come with a tricky clause that only those startups will be exempted from tax that meet certain conditions laid down by the DIPP, which now makes it mandatory for them to be certified as "startups" to claim an exemption. So far, seven companies have been recommended by the department for tax benefits under the startup policy, while there are at least 150 that are claiming the benefits of the policy.

In September 2016, Minister of state for commerce industry had told media that out of 3,576 startups recognized by DIPP only 67 startups have been given tax exemption (not to be confused with Angel Tax).

Govt To Remove Tax Hurdles For Angel Funding In Startups

In the start of fresh new year of 2018, government is condering removing tax hurdles for angel investment in startups.

Till now, startups receiving funding from angel investors are being levied Angel Tax -- 30% tax as income from other sources -- which in fact is hurting the Indian startups' funding for last one and half year and even slow down the investment in startups.

The continous complaint from Indian startup ecosystem has now forced Department of Industrial Policy and Promotion (DIPP) to take this tax regime confusion issue with SEBI and reconsider or relax some of the rules that is causing fall in funding of early age startups in India.

In addition, the issue of tax rules has also been taken up with the finance ministry, amid indications that the concerns may be addressed in the Budget at a time when the government is keen to revive investments in the economy and spur job creation.

The above development was first reported in Times of India.

Although, in June 2016, the Central Board of Direct Taxes (CBDT) said capital raised by startups from domestic angel investors will not be taxed as income even if the investment was more than the fair market value of the shares. It however come with a tricky clause that only those startups will be exempted from tax that meet certain conditions laid down by the DIPP, which now makes it mandatory for them to be certified as "startups" to claim an exemption. So far, seven companies have been recommended by the department for tax benefits under the startup policy, while there are at least 150 that are claiming the benefits of the policy.

In September 2016, Minister of state for commerce industry had told media that out of 3,576 startups recognized by DIPP only 67 startups have been given tax exemption (not to be confused with Angel Tax).

67 Startups Have Received Tax Benefits So Far: MoS Commerce Industry

The Indian government seems to be really committed to its cause of promoting budding entrepreneurs and supporting struggling startups in the country. According to Minister of State for Commerce & Industry C R Chaudhary, the Indian government has already provided tax benefits to 67 startups so far.

It was last year that the Modi government had announced and sanctioned the much awaited Rs 10,000 crore 'Fund of Funds for Startups'. The fund is one of the steps taken by the Central government towards boosting self-employment in the country — a move that is part of a larger initiative, Prime Minister Narendra Modi’s pet project ‘Startup India Action Plan’, which he unveiled himself in the month of January last year.

Addressing the startup India states conference, Chaudhary said, “3,576 startups have been recognised as on September 7 and tax benefits have been given to 67 innovative startups."

According to Department of Industrial Policy and Promotion (DIPP), they selected the 67 startups out of the 671 startups that they were considering for income tax exemption.

Chaudhary also assured that he will ensure that the chosen startups get full support and facilitation from both the centre and state governments. He said, “We are here to support you. Whenever you need any assistance or help, we are there for that."

The minister also took the occasion to encourage budding entrepreneurs in the country to work in areas that have been ignored for long like agriculture, health, animal husbandry and biotechnology.

Speaking at the same conference, DIPP Secretary Ramesh Abhishek also shared the progress various states are making towards realising the Startup India initiative. He revealed that 15 Indian states have already
formulated their startup policies through which they're facilitating the young businesses in their own states. He said, “States are important partners in this exercise" as startups in the country need support in areas like funding, infrastructure and marketing.

Abhishek also revealed at the conference that a total of Rs 1,587 crore funds has been allocated to startups so far. This is separate from the intellectual property related benefits that the government has provided to 639 startups.

In addition to the existing fund, the DIPP is also considering setting up a Rs 2,000 crore credit guarantee fund that would provide funding facilities to startups.

Ace Heathtech Startup Practo Gets Summoned by Tax Department for Wrongful Asset Valuations

Bengaluru-based Practo Technologies, which is dominating India's Health-Tech sector with five acquisition in last 3 years and highly funded health-tech startup, is being investigated by Indian authorities looking into whether it evaded tax through a cross-border corporate restructuring.

According to a notice from the Bangalore office of the Department of Income Tax seen by Nikkei Asian Review, Practo executives have been summoned to explain wide discrepancies between different company valuations conducted just a month apart in 2014. The lower valuation was used in calculating capital gains tax owed on the transfer of assets to an offshore affiliate in Singapore. The tax authorities searched Practo's offices in Bangalore and seized company records in late May, according to an official familiar with the investigation.

The difference between the value of Practo's intellectual property in 2014 and the company itself a year later caught the attention of the tax department, according to an official there. Much of the value of many startups lies in their intellectual property, as their fixed assets are usually relative insignificant to their businesses, according to what Dhananjayan Subramanian, an independent tax consultant in Chennai told to Nikkie Asian Review.

Practo's platform helps consumers in India and 14 other countries with finding doctors, booking appointments and medical tests, and ordering medicines. It also provides online medical consultations. The company says it has handled 50 million appointments with some 200,000 health care providers.

Til date, the company has raised $179M in 4 rounds from 11 investors including Google's parent company - Alphabet, China's Tencent Holdings, and Sequoia Capital.

Practo last raised $55 million in Series-D round of funding with valuation of around $600 million.

Till writing of this content piece, Practo has not responded to IndianWeb2 email query while the Bangalore income tax office declined to comment, citing policy on cases under investigation.

India's GDP is Less Than Untaxed Cash of Cos Like Apple, Google

In a shocking reveal, a US-based institute has published a report stating that some of biggest US companies like Google, Apple, IBM, Pfizer, Pepsi and Coke, McDonald's etc. are currently holding over a whopping $2.6 trillion in offshore accounts. According to the report by Institute for Tax and Economic Policy (ITEP), of the 500 top companies in the United States, 322 have large offshore holdings.

The report highlights that the $2.6 trillion figure is the highest-ever hoard held offshore by US companies and has costed the country's government a net tax loss of a jaw-dropping $767 billion.

The ITEP unraveled all the data from the 10-K filings, which are the reports filed by US companies with the US Securities and Exchange Commission.

If looked closely, one would observe that the untaxed funds from the US companies is more than India's GDP, four times the US defence budget, and is almost equal to the $2.45 trillion mandatory spending on social security, unemployment, food security and medicare by the US government in the year 2015.

The obvious question that arises here, is how all of this is possible? How are these American companies succeeding in keeping their profits abroad and evading the country's taxes? Well, as they say, if there's a will, there's a way, and the American companies seemed to have figured out a loophole in the US tax code that works in their favour.

ITEP's Richard Phillip explained the loophole in an interview to TOI. According to him, there this one provision in the US tax code, known as deferral, which allows companies to pay no additional US taxes on their offshore earnings until that money is repatriated. Only when the money gets technically repatriated, the companies are liable to pay the full US tax rate, minus any foreign taxes that they might have already paid.

Understanding the amount of cash that is stashed abroad and hoping to bring it back to the country, President Donald Trump has even proposed an amnesty scheme under which these companies can bring back their offshore cash by just shelling out a one-time 10 per cent tax.

Considering the fact that the current rate for corporate taxes in the US is 35 per cent, the 10 per cent one-time tax concession is a generous deal being offered by the government.

It is interesting to note that former President George W Bush has even had a similar amnesty scheme in 2004, where the companies just had to pay a one-time tax of 5.25 per cent. However, according to financial experts, that scheme turned out to be a big failure as the companies that had more cash stashed abroad were hoping the government to come up with tax holidays to bring the money back in the country.

Since this practice of stashing capital abroad has been going on for quite sometime now, financial experts weigh in that one of the best ways to make this practice obsolete is by making the companies pay US tax immediately on their offshore earnings, rather than giving them a significant window of time to postpone these taxes as is the situation under the current law. As soon as this tax avoidance privilege is taken away, the companies will have to bring the cash to the country and stop hoarding them offshore.

[Top Image: Bloomberg]

This is The Only Startup That Just Got Full Tax Exemption Because of Yoga Tag

Yoga Guru Baba Ramdev, who has become world-famous over the years for his endeavours in Ayurveda, business, politics and agriculture has a big reason to smile. One of his ventures, Patanjali Yogpeeth, which is a public charitable trust, has come out victorious in its appeal before the Income-tax Appellate Tribunal (ITAT), which has finally accepted the Haridwar, Uttarakhand-based trust's tax-exempt status.

According to the reasoning provided by the Delhi bench of ITAT behind its decision, it concluded, since Yoga entails providing medical relief and the camps are also known to provide people both 'medical relief ' and`education,' hence it falls within the umbrella meaning of charitable purpose, thus the Patanjali Yogpeeth trust is fully entitled to seek I-T exempt status under the sections 11 and 12 of the Income Tax Act.

In its order dated February 9, 2017, ITAT said, "The finding of I-T authorities that propagation of yoga by Patanjali Yogpeeth does not qualify as medical relief or imparting of education is not justified."

While the litigation settled by ITAT's Delhi bench specifically caters to the 200809, the Tribunal has also taken into consideration the new subsequent amendment in the I-T Act, which came into action last year on April 1, 2016. This particular amendment in the spotlight specifically added the word 'yoga' within the definition of a 'charitable purpose'.

If the ITAT wouldn't have upheld Patanjali Yogpeeth's exempt status, it would have become liable to pay income tax to the Indian government like a regular company. It is interesting to note that the Yogpeeth's total income never came out in the open in the ITAT order.

In addition to the upholding the tax-exempt status, the ITAT also concluded that the whopping corpus of Rs 43.98 crore received by the Haridwar, Uttarakhand-based trust in donations, primarily for the purpose of construction of cottages under its Vanprasth Ashram Scheme (which caters to providing accommodation to people attending residential yoga courses at the Yogpeeth), were capital receipts and hence not liable to income tax. In its order, The ITAT mentioned, "Corpus donations are not taxable, even in circumstances where the trust is not eligible for I-T exemption".

The Delhi bench of ITAT even ended up deleting the various additions made by the I-T authorities to Baba Ramdev's Patanjali Yogpeeth's income. This included a Rs 96 lakh addition made for services the trust extended to Vedic Broadcasting in which Acharya Balkrishnan, a trustee and close aide of Baba Ramdev holds substantial interest. According to the ITAT, it deleted the additions because the I-T authorities on the ground had failed to understand the facts. In fact, towards the end, the ITAT also ended up agreeing with the submissions made by the trust and concluded that some of the inferences made by the I-T authorities such as receipt of anonymous donations or the provision of benefits to certain persons were made without fully understanding and appreciating the facts.

Well, the final conclusion is that Ramdev's Patanjali will be doing tax-free business from now onwards, and the one thing that really made this possible was its 'Yoga' Tag.

Budget 2017 - Startups To Get Additional Tax Benefits

While every industry is looking forward to Budget 2017, scheduled to be unveiled on February 1 by Indian Finance Minister, Arun Jaitely, here's some good news coming the Startup industry's way.

A recent statement made by India's Commerce and Industry Minister Nirmala Sitharaman indicates that startups in India might be getting additional tax benefits in the forthcoming budget. Talking about how tax and tax related matters affect startups and their journeys, Sitharaman said, "it makes tangible difference to a start-up, and in that some work has happened, more to be happening. Let's see what this budget is going to offer".

A few weeks back, we had also reported about how the Commerce and Industry ministry had suggested the finance ministry to consider raising the tax relief window for startups from the current 3 years period to 7 years so as to encourage more and more entrepreneurs to test the startup waters.

Sitharaman also mentioned that her ministry keeps on receiving suggestions on tax and tax-related matters from the startups, which it meticulously compiles and hands over to the finance ministry. She also mentioned that she is sure that the finance ministry will look into the suggestion the Commerce and Industry ministry gave on raising the tax holiday for startups. Emphasising on the procedure, Sitharaman said that all the tax related benefits will have to come through the budget only. She also added, that her ministry has also put forth suggestions with regards to freeing startups from the obligation of MAT (minimum alternate tax). Further, the Commerce and Industry Minister also said that the government at the centre is making sure that it removes all the legislative hurdles being faced by the startups. The Centre has in fact also got the local authorities, including the states, involved in helping the budding entrepreneurs in all the local tax related issues among others.

Speaking at the first anniversary of Start Up India in New Delhi, Sitharaman also mentioned that she had recently asked DIPP secretary Ramesh Abhishek to arrange a meeting with RBI, SIDBI, banks and VCs so as to deliberate with them all the funding related issues being faced by the startups.

Speaking on the occasion, Abhishek said that the Indian startups are currently in need of more support in terms of taxation and infrastructure from the central government. He also added that the state governments should also join-in in providing full support to the units in the country. While a lot of states have already come up with startups specific policies, more states need to follow suit. "We are also involving corporates and banks to support start-ups... nothing is casting stone and we can rework at the definition of start-ups," said the DIPP secretary.

Highlighting his department's efforts towards the Indian startup ecosystem, Abhishek mentioned that the DIPP is currently meticulously working towards extending easy funding facilities to startups in the country, in addition to providing them with a suitable environment.

During the event, Sitharaman encouraged the startups/entrepreneurs in India to focus their interests on areas like waste management, aggregation of fuel, veterinary science and animal husbandry etc. and help in making the existing cities smart. She said, "These are the areas where we want start-ups to work on. I want them to look at how we can make our existing cities smart."

The Startup India initiative was launched last year by the Modi government to encourage entrepreneurship in the country. Launched by the Prime Minister himself, the much-talked about initiative laid down the blueprint for creation of a more conducive ecosystem for the growth of startups in the country. As a part of the initiative, a virtual hub that will serve as a one-stop solution platform for all startup related queries in addition to doubling up as a meeting ground for investors, incubators and startups is also in the process.

[Top Image: Shutterstock]

Govt. To Provide Greater Tax Relief To Startups

Modi government has been a huge supporter and promoter of the Indian Startup industry ever since it came to power at the centre in the year 2014. Keeping in tandem with its this ideology, the government is currently considering a proposal to raise the tax holiday for startups from the current three years period.

According to reports, with this, the government aims to boost an eco-system for budding entrepreneurs and job seekers in the country. A confirmed announcement about the same can be expected to be made during the budget session next year.

While the Department of Industrial Policy and Promotion (DIPP) has recommended to increase the three years tax holiday to a seven-year tax holiday, the finance ministry may agree upon providing a breather of four-five years on profits made by the startups in the country.

Finance Act, 2016 dictates that startups in India are eligible for an income tax exemption for a period of three years in a block of five years, if they get incorporated between April 1, 2016 and March 31, 2019. In order to avail the benefits, startups are required to obtain a eligibility certificate from the inter-ministerial board of the DIPP.

Since a majority of startups hardly make any profits in their initial years, with a certain percentage even failing to survive, Nirmala Sitharaman, India's commerce and industry minister has been pitching for a greater tax support to startups for a long time now. She believes that the Indian Startup industry not only has a potential to just create entrepreneurs but also generate massive jobs, something which the country desperately needs right now.

Several startups had also pleaded her to persuade the finance ministry to increase the tax holiday period earlier this year in a meeting.

Recent trends have shown that even e-commerce biggies like Amazon, Flipkart, Urban Ladder and Paytm have faced huge losses. This further underlines the need to support startups for a longer period than the current three years period.

A latest report by Kotak Institutional Equities highlights that the losses of 14 e-commerce companies — including travel portals, e-retailers, furniture sellers, food ordering and delivery players — jumped an annual 138% to Rs 10,670 crore in the financial year 2015-16, courtesy increased employee costs and advertising spending.

India is considered as the youngest startup nation in the world with 72% of the startup founders less than 35 years of age. The country houses approximately 4,750 startups, the highest after the US and the UK.

The starting of the year saw PM Modi unveiling a package of incentives to boost startups in the country by offering them a tax holiday and an inspector raj-free regime for three years, and capital gains tax exemption. He also announced SIDBI managed 'fund of funds’ of Rs. 10,000 crore. The fund will invest in Sebi-registered Alternative Investment Funds which, in turn, will be investing in startups.