The Startup Observer keenly observes the startup ecosystem to choose and list one company, person, or an entity to feature in this space every month. That entity should have created a major impact in the industry. And, this month, it’s a unique disruptor – the government of India – as it has taken some stern measures while also extended some critical benefits to the startup ecosystem.
First, the stern measure, the bad news. The income tax department has sent notices to 200 startups and unlisted subsidiaries of some major Indian companies and multinationals for raising funds through preference shares in excess of what it considers the fair market value.
The good news is that the government has extended tax benefits to 67 startups under the Startup India scheme with a view to promoting budding entrepreneurs in the country. About 3,576 Indian startups have been recognised as on September 7 of which 67 have availed the tax benefits.