Tax planning for setting up of a new business

Tax planning for setting up of a new business

• 1.
  PRESENTATION ON TAXPLANNING TAX PLANNING WITH REFERENCE TO SETTING UP OF A NEW BUSINESS BENEFIT ACCRUED FROM “MAKE IN INDIA” VARIOUS SCHEMES AND POLICIES FOR NEW ENTREPRENEURS PRESENTED BY AJIT MAJUMDER ABMFT 1601
• 2.
  TAX PLANNING OBJECTIVES:  Reductionof tax liability  Minimisation litigation  Productive investment  Healthy growth of economy  Economic stability
• 3.
  TAX PLANNING WITHREFERENCE TO SETTING UP OF A NEW BUSINESS  Location of new business  Nature of new business  Form of new business
• 4.
  LOCATION OF NEWBUSINESS  Industrial undertaking in free trade zones (sec 10A)  100 per cent export oriented undertaking (sec 10B)  Industrial undertaking in an industrially backward state or district (sec 80IB)
• 5.
  NATURE OF NEWBUSINESS  Venture capital companies [sec 10(23FB)]  Infrastructure capital companies [sec 10(23G)]  Tea development account [sec 33AB]  Site restoration fund [sec33ABA]  Telecommunication services [sec 35ABB]  Reserves for shipping business [sec 33AC]  Amortisation of certain preliminary expenses [sec 35D]  Deductions for expenditure on prospecting for certain minerals [sec 35E]  Special provision for deduction in the case of business for prospecting for mineral oil [sec 42 &44BB]
• 6.
   Special provisionsfor computing profits and gains of business of civil construction [sec 44AD]  Special provisions in the case of business of plying, hiring or leasing goods carriages [sec44AE]  Special provisions for computing profits and gains of retail business [sec 44AF]  Special provisions in the case of shipping business[sec 44B]  Special provisions in the case of business of operation of aircraft [sec 44BBA]  Special provisions in the case of certain turnkey power projects [sec44BBB]  Special provisions in the case of royalty income of foreign companies [sec 44D]
• 7.
   Profits andgains from industrial undertakings engaged in infrastructure, etc [sec 80IA]  Profits and gains from certain industrial undertakings other than infrastructure development undertakings [sec 80IB]  Profits and gains from the business of collecting and processing of bio-degradable waste [sec 80JJA]  Employment of new workmen [sec 80JJAA]  Special tax provision under sections 115A, 115AB, 115AC, 115AD, 115B, 115BB, 115BBA and 115D.
• 8.
  FORM OF ORGANISATION Company form of organisation  Partnership firm or limited liability partnership  Sole proprietorship  Hindu Undivided Family
• 9.
  BENEFIT ACCRUED FROM“MAKE IN INDIA”  Facilitating USD 55 Billion investments to create 1.6 million jobs  FDI flow USD 130 Billion [2014-16]  Enabling startups with the INR 10,000 crore “Fund of Funds”  Provisions made for startups to get tax exemption for 3 years  3,43,311 youth trained with 81% placement[2014- 16]
• 10.
  VARIOUS SCHEMES ANDPOLICIES FOR NEW ENTREPRENEURS  3 year tax holiday for new entrepreneurs  Change in duty rates to boost manufacturing  Small bag of goodies for importers  Service tax changes in Budget2016  FDI in food retailing  Presumptive tax schemes for small business  Employee provident fund  80gg deduction increased by Rs. 36000/annum  Amendments in companies act, 2013  Capital gains and ARCs
• 11.
  CONCLUSION  With propertax planning new business can get advantages of tax exemptions, deductions, incentives, rebates and reliefs permitted under law.  “MAKE IN INDIA” provides a red carpet for new venture grow, attracts massive FDI and it is awarded best investment promotion agency in 2016 in the world.  Supporting government balanced schemes and policies targeting toward achieving social infrastructure and better atmosphere to do business.
• 12.
  THANK YOU