The Venture Intelligence Blog

Extract from the Preface by  Suhail Nathani, Managing Partner : In the first budget, post the thumping victory in the elections, the Finance Minister has been rich on intent and has something to offer every constituency – from startups to NBFCs and everyone in between. There are full marks for the path ahead – reform in FDI, ‘ease of living’ through ‘less government and maximum governance’, infusion of capital in the PSU banks, government guarantees for lending to NBFCs, strategic disinvestment and promise of several other reforms. Even in the taxation realm, while there are increase in tax surcharges for those earning above 2 crores per year (clearly not welcomed by those already paying high taxes), 99.3% of corporates will see tax rates remain the same or reduced. The administration of tax is also reformed – most notably with a plan to reduce legacy litigation in indirect taxes breaking free from years of prolonged litigation and uncertainty. Specifically, on ...

An analysis by The Finance Minister on February 1 presented to the union budget for the financial year 2017-2018. The budget offered the following concessions to the start-ups: 1. Extension to the Period of Tax Break   Presently an eligible start-up is allowed a deduction of the entire amount of the profits and gains derived from eligible business for three consecutive assessment years out of five years beginning from the year in which such eligible start-up is incorporated. However, keeping in mind the time taken to derive profits by start-ups, it proposed that an eligible start-up can avail the tax break for any three consecutive assessment years out of seven years beginning from the year in which such eligible start-up is incorporated. 2. Carry Forward of Losses  Presently a company, not being a company in which public are substantially interested, cannot carry forward its losses, unless it has continuous holding of more than 51% (fifty one) percent of th...

By Sesh AV, Managing Director, Basiz Fund Services The finance bill of 2015, proposed by Shri.Arun Jaitley has made some important big bang reforms for the Private Equity & Venture capital Industry in India. An Industry that invests into the entrepreneurial community every year, has finally been recognized by the government as one of the important contributors to “The Make in India” Programme.   I would opine that this bill gives impetus to channeling domestic capital to vehicles like Alternate Investment Funds, that invest into risky areas that need venture and growth capital by introducing a level playing field between domestic and foreign capital. However there are shortcomings still, which one would hope will be considered for suitable rectification / modification.  Analysis of impact on Private Equity & Venture Capital industry  in India: • Foreign investment allowed in AIF The bill proposes to allow foreign investment i...