DPIIT proposes Income Tax Rebate for Founders who Sell their Properties

The Department for Promotion of Industry and Internal Trade (DPIIT) has proposed relaxation in the income tax to the sale of residential properties and carrying forward of losses as a part of ‘Startup India Vision 2024’. Entrepreneurs often sell their properties to support the funding of their startup. According to the Income Tax Act, the capital gain on transfer of house property currently results in tax liability. This is one of the much-needed reforms.

According to Section 54GB, the capital gain on transfer of residential properties is not charged in certain cases including relief from long-term capital gains tax on the transfer of residential property and if sale consideration invested in a manufacturing small or medium enterprise (MSME).

The DPIIT has recommended certain amendments in Section 54GB and Section 79 of the Income Tax Act in order to support entrepreneurs who sell their properties in times of financial crisis. The proposal included setting up of 500 new startup incubators and accelerators by 2024, 100 innovation zones in urban local bodies and expanding CSR funding to these incubators.

The Department for Promotion of Industry and Internal Trade has also proposed to create 50,000 new startups in India by 2024 that will create more than 2 million direct and indirect job opportunities. The entire corpus of ₹10,000 crore Startup Fund will be deployed till 2024. The fund was set up in 2016 but yet do not have a clarity on its disbursement.

SW Staffhttps://startupwonders.com/guestpost
Startup Wonders provide startup resources, stories and news to help budding entrepreneurs grow and succeed in their business career.

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