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Indian Government To Tax Angel Funding

Posted by samzenpus on from the nothing-is-free dept.

kousik writes "The Indian Government proposes to tax Angel Investment as income and is asking start-ups to pay a 30% tax on the funding. From the article: 'Ravi Kiran, co-founder of middle-India advisory Friends of Ambition (FoA) and member of Indian Angel Network told Firstpost: “There seems to certainly have been an error in understanding on the part of the Budget makers. If this is pushed through, it will spell serious trouble for the angel investor and entrepreneurship space. I feel this is an error and should be corrected quickly before it leads to confusion.”'"

5 of 157 comments (clear)

  1. Selling shares is debt, not income by EmagGeek · · Score: 5, Insightful

    It's clear the legislators have zero clue what investment means.

    When a company receives startup funding, it is in exchange for ownership shares. That makes it borrowing, not income. Shareholder Equity offsets that funding on the balance sheet.

  2. Wow by JWW · · Score: 4, Insightful

    And her I thought regulatory uncertainty and IP law we stifling innovation.

    The Indians are taking innovation killing to a whole new level.

    1. Re:Wow by Anonymous Coward · · Score: 5, Insightful

      Don't be live the summary. The Indians are worried about tax dodges exploiting a loophole by pretending it is investment when it is just hiding cash in a shell organization.

  3. Thank you, India. by pubwvj · · Score: 4, Insightful

    The rest of the business world thanks the Indian government for destroying India's competitive edge. Now it will be all the easier to compete against India. Rah-rah, India!

    Why is it that government's just don't get it. They need business to provide jobs so they can have something to tax. Dummies.

  4. Understanding may not be the problem. by __aaltlg1547 · · Score: 4, Insightful

    Major corporations would be FOR this sort of legislation. It prevents competitors from getting into your market.