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12 09, 2014

Jama-Kharchi and the Conversion of Black to White

By |September 12th, 2014|Categories: JamaKharchi, StartupTax|2 Comments

For the uninitiated among us (and I am one) it seems there’s this concept called “Jama Kharchi”, which is about converting black money to white. Jama-kharchi , of “accomodating entry” companies which basically make two kind of entities meet:

17 09, 2013

SEBI Finalizes Angel Fund Regulations

By |September 17th, 2013|Categories: Startups, StartupTax|Comments Off on SEBI Finalizes Angel Fund Regulations

SEBI has notified final regulations for angel funds. I have noted many of these in the past, so for background:

26 06, 2013

Angel Fund Guidelines: Helps the Superangels, Keeps Out Smaller Investors

By |June 26th, 2013|Categories: SEBI, Startups, StartupTax|Comments Off on Angel Fund Guidelines: Helps the Superangels, Keeps Out Smaller Investors

SEBI has introduced new guidelines for Angel Funds. As I’ve said recently, this is an absolutely important requirement in order for startups to avoid the “Startup Tax” (, a tax regulation that classifies investment as “income” if it is at a premium to the “par” value of a share of a company.

(Read the free Startup Tax e-Book)

The tax […]

20 06, 2013

Speculation: SEBI Angel Fund Rules Could Help Ease Startup Tax

By |June 20th, 2013|Categories: SEBI, StartupTax|Comments Off on Speculation: SEBI Angel Fund Rules Could Help Ease Startup Tax

The Finance Minister had in his budget speech mentioned that:

SEBI will prescribe requirements for angel investor pools by which they can be registered as Category 1 AIF venture capital funds.

(Read: Startups in Budget 2013, a Mixed Bag)

CNBC has the news that SEBI might announce the requirements on July 25 (speculation):

In […]

9 06, 2012

Jagan-Srinivasan Enquiry Explains the Startup Tax

By |June 9th, 2012|Categories: StartupTax|1 Comment

When the CBI investigated BCCI Chief N. Srinivasan’s company, India Cements, they seem to have uncovered why the “Startup Tax” was introduced in the budget. (Read Full Set of Posts) The company invested in companies owned by Jagan Reddy, son of the late YS Rajasekhara Reddy, who was the Chief Minister of Andhra Pradesh, in a way that the CBI says was a disguised bribe. From Firstpost:

According […]

27 03, 2012

FREE E-Book: The Startup Tax in India

By |March 27th, 2012|Categories: StartupTax|Tags: , |1 Comment

I consolidated material from all the posts on the Startup Tax in India and put it into an easy-to-download E-Book (PDF). I hope you like it! 

Edit: The content in the ebook is relevant even in 2016. Let us know if you have any questions or comments. Thanks!

StartupTaxBig

As things change, I will update […]

19 03, 2012

Startup Tax: Becoming a Venture Capital Fund

By |March 19th, 2012|Categories: StartupTax|1 Comment

Also Read: Angel Investors Beware: Funding Startups Could be Classified as Income

Many investors have asked, privately, if they can set up a Venture Capital fund, because any company such funds invest in, will no longer get the startup tax.

Such VC funds have regulations from SEBI. You will want to read:

17 03, 2012

Startup Tax: Tax Dept Tells You How To Value Your Startup

By |March 17th, 2012|Categories: StartupTax|Comments Off on Startup Tax: Tax Dept Tells You How To Value Your Startup

We know now that the new amendment in the budget will attempt to tax angel investors that want to buy into a company at a “premium” valuation, a concept rife in the startup world.

The “Startup Tax” article has generated some excellent responses. Among them is Rajesh’s reply which I’d like to highlight in a separate post: Rajesh says:

You can always prove the FMV and we will hopefully know […]