Startups Will Need More Exemptions

  • Prime Minister announced several important reforms but start-ups would like to see some more changes.
  • ESOPs should ideally be taxed only at the time of sale and not at the time of exercise.
  • Exemption should be provided to start-ups from paying service tax/VAT.
    Investments received from them by companies should be exempt.
  • The same principles that are applicable for a tax-free merger should also apply to share swaps.