He has also promised ‘solid incentives’ and tax credits based on how many jobs a startup creates.

Rahul Gandhis startup push Promises to remove Angel Tax waive permissions for 3 yrs
Atom Startups Friday, March 29, 2019 - 10:13

In the run-up to the upcoming elections, Congress President Rahul Gandhi has promised startups that there will be zero permission for the first three years for all new businesses in a bid to woo entrepreneurs in the country.

In a tweet, he also said that Angel Tax, which has been a bone of contention for the startup industry over the past few years will be abolished. The startup industry has been plagued by the issue of angel tax over the past 2-3 years, which is currently charged at a maximum rate of 30%. However, despite several recommendations to the current government on its abolishment, there has been little relief.

However, in February 2019, the Ministry of Commerce and Industry issued a notification stating that a startup can be exempted under Section 56 (2)(viib) of the Income Tax Act if it is a privately held company, if the amount is up to Rs 25 crore and is recognised by DPIIT.

Rahul Gandhi has proposed to completely abolish Angel Tax.

He has also promised ‘solid incentives’ and tax credits based on how many jobs a startup creates. He also promised easy bank credit to all youngsters looking to start a new business and create jobs in India.

In an interview with PTI, Gandhi added that Congress’ key priority is to promote the domestic industry and promised to ensure that new businesses and startups are freed from ‘the clutches of red tape’ and in turn give a boost to the economy. 

This reportedly came after several rounds of discussions with entrepreneurs, where the biggest problem put forward by them was the issue of various permissions required from various agencies while starting a business and the bribery that takes place in the process.

Adding to this, Congress spokesperson Rajeev Gowda, an MP from Karnataka also tweeted promising to ‘liberate entrepreneurs, MSMEs, and start-ups from inspector raj’.

“They will be exempt from all applicable laws and regulations (except Minimum Wages Act & tax laws) for 3 years or, for new businesses, the date of commencement. Our MSMEs need this healing touch after demonetisation & GST. This will spur job creation & unleash animal spirits,” he added.

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