How TaxDunia Simplifies Complex Tax Filing for Entrepreneurs
Being an entrepreneur and starting a new business is a difficult task that demands focus and dedicated attention. Entrepreneurs have to oversee every minute detail to ensure the growth of a business. Whether it is to come up with a new idea, an innovative idea, or getting funds for the operation, everything comes with a lot of baggage. One of the most difficult tasks for entrepreneurs is to meet legal compliance and file the returns timely manner. Startups in India are offered various tax benefits in the form of lower tax rates, exemptions, and deductions. To get these benefits and delegate the stress for optimizing tax savings, reach out to TaxDunia. The dedicated and professional team of experts at TaxDunia simplifies complex tax filings for entrepreneurs in many ways. Let’s get started.
Types of Tax Benefits for Entrepreneurs
Tax Exemption for the First Three Years
To give extra time to entrepreneurs, the government offers full tax exemptions to startups. It facilitates businesses to maintain cash flow and additional income savings. They can focus more on core business activities and plan the budget accordingly. Indian start-ups have 100% tax exemptions for the first three years since their establishment. The start-ups connected with the Department of Industrial Policy and Promotion (DIPP) can claim benefits. The start-up has to work in the field of intellectual property and contributes to the innovation and development of the services and products related to the same. Though start-ups have to pay MAT (minimum alternative tax) on the book profit. TaxDunia can help you claim such exemptions effectively.
No Tax on Angel Investment
One of the most difficult tasks that entrepreneurs can face is raising capital. Investors hesitate to fund new businesses and start-ups, making it complicated for entrepreneurs to support their businesses in the early stage. In such a case, the no taxation on angel investments comes in handy for entrepreneurs. Start-ups getting funds from Angel investments are tax-free, and TaxDunia can help you get an Angel Investor so that the lack of funds does not affect your start-up and dreams attached to it.
Tax Exemption on Capital Gains
The government offers tax exemptions to start-ups on capital gains or the profits earned from the company stocks. A 20% tax benefit on capital gains is offered to start-ups in India.
Presumptive Tax Benefit
Entrepreneurs have added pressure to maintain books of records for tax purposes. It increases the cost of compliance and burdens the business at a very early stage. Therefore, the government offers presumptive tax benefits to start-ups whose turnover is under Rs 2 Crs. Under this scheme, the business is not required to maintain any book of accounts and TaxDunia can help you avail of these available benefits and make the optimum use of them.
Carry Forward of Losses
Established businesses that are not considered startups can carry forward losses for 7 years, but businesses recognized by the Department of Promotion of Industries and Internal Trade (DPIIT) can carry forward losses for the first 10 years of incorporation for 10 subsequent years. This benefit is still applicable even if the shareholding pattern of the business has changed in these years, though the original shareholder holds at least 51% of the voting power.
Section 54GB
This section of the Income Tax Act 1961 was amended in the Finance Act 2016. It benefits individuals or HUFs who want to invest in a startup. Such persons can claim exemptions on Income from Capital Gains tax on the transfer of a long-term residential property. The exemptions under section 54GB have certain limitations and drawbacks. To know about the same, reach out to TaxDunia. We can help you identify the prospective benefits and utilise the same accordingly for your start-up.
Get Started with TaxDunia
TaxDunia ensures that you have exhausted all the available resources to reduce the total taxable income and have optimized savings while paying the taxes. The team will ensure that it is doing all the paperwork so that you can concentrate on the core of the business. Filing the income tax returns before the due date has its perks, so do not miss out on filing the returns on time and meet the compliance to avoid legal actions and other subsequent complications.
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