More reforms for startups on the anvil

The government is planning to roll out a string of measures to make it easier for the startups to do business in the country. In line with the announcement on e-verification for angel investors in the budget, the government will introduce new tax return forms, aimed at saving angel investors and startups from any questioning by tax officers.

E-verification seeks to help establish the identity of the investor and source of his funds. Consequently, funds raised by startups will not require any kind of scrutiny by the income-tax department. In April too, the government had made some changes in one category of income-tax returns by incorporating the shareholding of startups and investments in startups.