Accio ESOPs’ Post

Startups in India can benefit significantly from various tax incentives and exemptions provided under the Department for Promotion of Industry and Internal Trade (DPIIT) Recognition. This recognition is part of the government’s efforts to foster innovation and support the growth of startups, giving them tax benefits, relaxed compliance, and access to other resources. Here’s a guide on how startups can leverage these tax benefits under DPIIT recognition: https://lnkd.in/gBCNyfNf #startups #dpiit #startupindia #taxbenefits

India has become rich in its startup culture in recent times. With a supportive business ecosystem, a change in mindset among the working class, and the rise of an entrepreneurial spirit, many startups have sparked bright. However, one key challenge entrepreneurs face is attracting investors at the right time. Believe it or not, financial reporting plays a critical role in instilling confidence and transparency among potential advisors. If you are still unsure about the financial reporting for your firm, this blog will guide you through: https://zurl.co/oQcJ #finsmartaccounting #accountingandaccountants #financialreporting #startup #outsourcing

Having your own accounting startup can be thrilling, but not when you have to navigate through a whole lot of regulatory challenges, carefully build a team that sticks by you, manage costs, infrastructure and so much. Besides, accounting is a field where precision is prime and hence, it is important for Indian startup owners to keep a track of all activities. New startup owners are prone to make some of the common mistakes. This blog is aimed to help you know about these common mistakes so as to avoid them and be prepared to tackle them if needed. Read now: https://lnkd.in/dtYABTvC #Finsmartaccounting #accountingandaccountants #outsourcing #accountingmistakes #accounting

Angel Tax abolished! A major win for India's startup ecosystem. Read this interesting article by our founder Roma Priya: https://lnkd.in/gx4CqjpH #BurgeonLaw #AngelTax #Startup #India #Investment #Innovation

𝐁𝐨𝐨𝐬𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐒𝐭𝐚𝐫𝐭𝐮𝐩 𝐄𝐜𝐨𝐬𝐲𝐬𝐭𝐞𝐦: 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐍𝐞𝐰 𝐁𝐮𝐝𝐠𝐞𝐭 The recent budget announcement has brought slight cheers to the startup ecosystem in India. Two major changes—tax parity and the abolition of the angel tax—are poised to make investing in startups more attractive and foster growth in the sector. 1) 𝑻𝒂𝒙 𝑷𝒂𝒓𝒊𝒕𝒚: 𝑨 𝑳𝒆𝒗𝒆𝒍 𝑷𝒍𝒂𝒚𝒊𝒏𝒈 𝑭𝒊𝒆𝒍𝒅 𝒇𝒐𝒓 𝑰𝒏𝒗𝒆𝒔𝒕𝒐𝒓𝒔 Earlier - Indian investors had to pay 20% on gains from private securities (or startups) while foreign investors enjoyed a lower tax rate of 10% on the same gains. Additionally long-term capital gains from listed public markets were taxed at 10% vs 20% for private securities. Now - With the new budget, the tax rate has been standardised to 12.5% for all investors, irrespective of their domestic or foreign status, and for all markets, whether public or private. Potential Impact - This move is set to democratize the investment landscape. By creating a uniform tax rate, the government has levelled the playing field, making investing in startups more appealing. This is likely to attract a broader pool of investors, both domestic and international, thereby providing startups with greater access to capital. 2) 𝑨𝒃𝒐𝒍𝒊𝒕𝒊𝒐𝒏 𝒐𝒇 𝑨𝒏𝒈𝒆𝒍 𝑻𝒂𝒙: 𝑳𝒆𝒔𝒔 𝒍𝒆𝒈𝒂𝒍 𝒉𝒖𝒓𝒅𝒍𝒆𝒔 & 𝒔𝒎𝒐𝒐𝒕𝒉 𝒑𝒓𝒐𝒄𝒆𝒔𝒔 Earlier - Another significant change is the abolition of the angel tax, effective from 2025. Introduced in 2012, the angel tax required startups to pay a portion of the capital raised as taxes. This led to numerous challenges, including the need for startups to employ various legal hacks to mitigate the tax burden and facing harassment and scrutiny from official post fundraising process. Now - The abolition of the angel tax eliminates these hurdles, simplifying the fundraising process for startups and avoiding harassments for founders. Potential impact - This change is expected to boost investor confidence and encourage more angel investments, providing startups with the much-needed capital to grow and innovate. 𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧: These reforms reflect the government's commitment to fostering a robust startup ecosystem. By addressing the concerns around tax parity and the angel tax, the budget has paved the way for a more inclusive and vibrant investment environment. As these changes take effect, we can expect to see a surge in startup activity, driving innovation and economic growth in the years to come. PS: The above views are from a startup ecosystem POV, salaried tax payers may have other views of course :)

𝐓𝐡𝐞 𝐄𝐧𝐝 𝐨𝐟 𝐀𝐧𝐠𝐞𝐥 𝐓𝐚𝐱: 𝐀 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐁𝐨𝐨𝐬𝐭 𝐟𝐨𝐫 𝐈𝐧𝐝𝐢𝐚𝐧 𝐒𝐭𝐚𝐫𝐭𝐮𝐩𝐬 The recent elimination of the Angel Tax represents a significant and transformative milestone for India's startup ecosystem. This move is set to remove a longstanding barrier to investment, fostering a more supportive environment for innovation and entrepreneurship. In our latest blog post, we explore the history of the Angel Tax, its impact on startups, and the implications of this policy change for the future of India's entrepreneurial ecosystem. Read the full article here: https://lnkd.in/gsXp4cSc #TransferPricing #Tax #InternationalTax #TaxSeason #Benchmarking #TaxExperts #OECD #CA #ICAI #CBDT CA Majhar Awedin Mohsin Khan Aimbiz Global Consulting Sumaiyya Khan Navaneethan Kuppuraj CA Raksha Agarwal

Explore the latest developments in accounting standards for intangible assets and discover how OnTheGo Accountants can assist tech startups and high-growth companies in adapting to these changes. #startups #intangibleassets #techstartups #highgrowth

𝗧͟𝗵͟𝗲͟ ͟𝗣͟𝗼͟𝘄͟𝗲͟𝗿͟ ͟𝗼͟𝗳͟ ͟𝗣͟𝗿͟𝗼͟𝗮͟𝗰͟𝘁͟𝗶͟𝘃͟𝗲͟ ͟𝗣͟𝗹͟𝗮͟𝗻͟𝗻͟𝗶͟𝗻͟𝗴͟:͟ ͟𝗛͟𝗼͟𝘄͟ ͟𝗦͟𝘁͟𝗮͟𝗿͟𝘁͟𝘂͟𝗽͟𝘀͟ ͟𝗖͟𝗮͟𝗻͟ ͟𝗔͟𝘃͟𝗼͟𝗶͟𝗱͟ ͟𝗧͟𝗮͟𝘅͟ ͟𝗛͟𝗲͟𝗮͟𝗱͟𝗮͟𝗰͟𝗵͟𝗲͟𝘀͟ Following up on the challenges Indian startups face with taxes, let's explore how proactive planning can make a big difference: • 𝗦𝘁𝗮𝘆 𝗨𝗽𝗱𝗮𝘁𝗲𝗱: Familiarity with government schemes and recent tax law changes can unlock valuable deductions. Resources like the Income Tax Department website and industry publications are great starting points. • 𝗢𝗿𝗴𝗮𝗻𝗶𝘇𝗲 𝗬𝗼𝘂𝗿 𝗥𝗲𝗰𝗼𝗿𝗱𝘀: Maintain a clear system for receipts, invoices, and employee contracts. This saves time and ensures accuracy during tax filing. • 𝗦𝗲𝗲𝗸 𝗚𝘂𝗶𝗱𝗮𝗻𝗰𝗲: Consider consulting with a tax advisor or Chartered Accountant familiar with the startup ecosystem. They can provide tailored advice and assist with navigating complex regulations. Building a strong financial foundation is crucial for any startup's success.  By proactively managing your taxes, you can: • 𝗙𝗿𝗲𝗲 𝘂𝗽 𝘃𝗮𝗹𝘂𝗮𝗯𝗹𝗲 𝗿𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀: Minimize time and stress associated with tax season. • 𝗠𝗮𝘅𝗶𝗺𝗶𝘇𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗿𝗲𝘁𝘂𝗿𝗻𝘀: Claim all eligible deductions and minimize tax burdens. • 𝗗𝗲𝗺𝗼𝗻𝘀𝘁𝗿𝗮𝘁𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆: This can be attractive to potential investors or partners. 𝗘𝗺𝗽𝗼𝘄𝗲𝗿𝗶𝗻𝗴 𝗜𝗻𝗱𝗶𝗮𝗻 𝘀𝘁𝗮𝗿𝘁𝘂𝗽𝘀 𝗳𝗼𝗿 𝗮 𝗯𝗿𝗶𝗴𝗵𝘁𝗲𝗿 𝗳𝘂𝘁𝘂𝗿𝗲! Remember, a thriving startup ecosystem benefits everyone. By sharing knowledge and fostering collaboration, we can create a more supportive environment for innovation and growth. #startuptaxes #financialplanning #business #Startup #StartupIndia #Entrepreneurship #VentureCapital #TalkToACa #internalaudit #startupgrowth #financialhealth #successstory

Budget 2024: FM Nirmala Sitharaman abolishes ‘Angel Tax’ to support Indian startups #budget2024 #startups #angeltax #nirmalasitharaman

"At a time when many startups, especially in the fintech industry, have received income tax notices recently, industry executives and investors said this has created anxiety in company circles. They said such an action is regressive and poses significant challenges to startup operations and investor confidence. The notices were served under Section 68 of the Income Tax Act. They have clubbed the investments made in the startups, along with the revenue, to calculate the tax, according to the sources. Many companies that have been served the notices are being asked about the creditworthiness of investors, who put in money, according to fintech industry executives. “ There is another concern about the valuation of many of these startups, for which a particular premium has been calculated,” said a person familiar with the development. The person quoted above added that income tax notices were served only a few weeks before the closure of the financial year (FY24). These notices were related to FY22 and FY23. Companies were required to furnish details about investors on a notice as short as three or four days. “ People also felt that since the income tax department has the PAN details of these investors, why did it not seek information from them directly?” the person above asked. Meanwhile, people in the know said that institutional investors and those with investments in the banking, financial services, and insurance (BFSI) sector were also affected by the move. “Investors resist sharing information since they are not obliged to share details. As a result, companies may not have immediate access to some of this information requested,” the person added. A fintech industry player said companies will have to figure out the root cause of the action taken by the authorities. “ There is no denial that the government has supported startups. However, with all these things, there is support only in terms of words and it doesn´t translate into practice,” the person added. Executives said such action occupies too much time during normal operations. This is taking place at a time when getting access to capital is also difficult. Anil Joshi, managing partner, Unicorn India Ventures, said while the action is justified under the IT Act, it is causing a lot of backend work for all concerned. This includes investors who have put money through proper banking channels. Joshi said though the reason is to control dubious transactions, it is putting everyone in hardship to justify the genuine investment. “ I am sure the policymakers will find some solution to the situation and make it a stressfree investment environment for genuine investments,” said Joshi." Full report: https://lnkd.in/gZHyQtxr