The government wants to take more steps to encourage the startups in the country. The Department for Promotion of Industry and Internal Trade (DPIIT), the nodal agency that looks at startups, is in the process of preparing a vision document ‘Startup India Vision 2024’, reports PTI. One of the proposals being included in this document is that the country’s income tax laws be relaxed to permit startup entrepreneurs to sell their residential properties without attracting capital gains tax.
This relaxation, if the government agrees, will have to be made in Section 54GB (capital gain on transfer of residential property not to be charged in certain cases) and Section 79 (carry forward and set off of losses in case of certain companies) of the Income Tax Act.
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Another concession being recommended by DPIIT in its vision paper is to allow carry forward of losses even if the promoters do not fold 100% equity.
Source: The News Minute
