New thematic funds, cap on LTCG tax surcharge cheer start ups are racing to define what DAO’s actually are

• ByStartupStory     |    February 2, 2022

As a whole, LTCG tax on unrecorded securities is now at 23.92% as compared to 28.5 % earlier, an industry representative said.

HNIs investing in the start up and funds ecosystem, too, will have to pay lower tax on LTCG, a proficient said.

The finance minister Nirmala Sitharaman’s budget propositions to cast a launch new thematic funds, extend tax benefits to catalogued start ups by a year, and to cap long- term capital gains ( LTCG)

Tax surcharge will benedict founders, start ups, investors, and high net- worth individuals (HNIS).

Although, the decision of government was to shun essentials of Abroad direct listing rules for start up was a damper, said industry watchers.

The budget proposal to dispose thematic farce, corresponding to the fund of funds approach under the small Industries Development Bank of India and the National Investment and armature, fund for investment in agriculture, climate action and pharma sectors, will bring on a multiplier effects by seeding multiple ways in investment funds. 

As said by Gopal Srinivasan, chairman and managing director, TVS capital funds.

This proposition will support onshore private objectiveness and new capital firms and facilitate the start up ecosystem as each fund of funds will, in turn, invest in 150, 200 start ups, Gopal Jain managing partner, Gaja Capital said.

Investors were also elated about the government’s next step to cap LTCG tax surcharge at 15%. “ as a whole, LTCG tax on unreported securities is recently is at 23. 92% as compared to 28.5% earlier.

This will employ to founder,on the other hand, employee stock option holders and domestic investors.

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