<img class="gwt-Image" src="/photo/46957345.cms" />The Income-Tax department has once again named <keyword id="91729" type="UNKNOWN" weightage="80" keywordseo="Tax-defaulters">tax defaulters</keyword> in the country on its website. 
 It released the data in this regard late on Wednesday night. Out of the 31 names of tax evaders mentioned, six are from <keyword id="6354766" type="COMPANY" weightage="80" keywordseo="Gujarat">Gujarat</keyword> (four individuals and two companies). The individuals are into share trading and angadia business while the two companies named are Dharnendra Industries Ltd and Gujarat Pipes Ltd. These individuals and companies have evaded around Rs 134 crore in taxes since 1980-81. 
 
The I-T department had similarly named to shame defaulters by announcing a list of tax evaders a fortnight ago. In that list, too, 11 out of the 18 top tax evaders were from Gujarat. So out of total 49 names announced till now, 17 are from Gujarat, followed by 14 from Telangana and 11 from Maharashtra. The total amount Gujarat companies and individuals owe the I-T department comes to Rs 401.55 crore. 
 Adopting an aggressive approach, the <keyword id="26362" type="ORGANIZATION" weightage="80" keywordseo="Government">government</keyword> has for the first time gone public with names of tax defaulters. 
 
The individuals who have defaulted on taxes are Indravadan Darbar (capital gains/share trading), Devendra Shah (capital gains), Rajnikant M Desai (Angadia production and film distribution) and Girish Prabhu Das Ruparel. According to I-T officials, in spite of several reminders and notices, these individuals had failed to pay taxes. 
 The 'name and shame' method adopted by the I-T dept is being seen as an attempt to recover taxes from defaulters who have been dodging officials for several years. Some of the taxes to be recovered from these defaulters is due since 1980-81. The Central Board of <keyword id="57161" type="CITY" weightage="80" keywordseo="Direct-Taxes">Direct Taxes</keyword> (CBDT) had asked the I-T department to post on its website the names of the defaulters. 
 
The companies named in the latest list released by the I-T department from Gujarat include ice cream and frozen food manufacturer Dharnendra Industries Ltd and Gujarat Pipes Ltd. According to the list, Gujarat Pipes Ltd exists only on paper without any assets and has to pay Rs 12.44 crore in taxes. 
 
The defaulter companies in the earlier list announced by the department include Somani Cement, Appletech Solutions, Jupiter Business and Hirak Biotech among others. 
 
According to the notice, defaulters are advised to pay tax arrears immediately. The department, in the public notice, has provided the PAN number and the last known address of these defaulters. 
 
States with maximum evaders State- Number of defaulters Gujarat- 17 Telangana- 14 Maharashtra- 11 Others- 7 Total 49 
 
Major evaders from Gujarat Name of defaulter- Tax arrears (in Rs cr) Individuals Indravadan V Darbar- 27.81 Devendra Kantilal Shah- 25.13 Rajnikant M Desai- 13.08 Girish Prabhu Das Ruparel- 27.09 Laxminarayan T Thakkar- 12.49 Companies Blue Information Technology Ltd- 75.11 Dharmendra Industries- 28.80 Appletech Solutions Ltd- 27.70 Somani Cement Co Ltd- 27.47 Jupiter Business Ltd- 21.31 Viraj Dyeing &amp; Printing Pvt Ltd- 18.57 Hirak Biotech Ltd- 18.54 Icon Bio Pharma &amp; Healthcare Ltd- 17.69 Banyan &amp; Berry Alloys Ltd- 17.48 Poonam Industries Ltd- 15.84 Kunvar Ajay Food Pvt Ltd- 15.00 Gujarat Pipes Ltd- 12.44 (Source: incometaxindia.gov.in)

Gujaratis sure know their 'dhandha', but they're also among India's top tax defaulters

<img class="gwt-Image" src="/photo/51237891.cms" style="width: 800px; height: 600px;" /> Even as the overall mood is upbeat after the Budget, there’s something that has left both the <keyword id="6362513" type="ORGANIZATION" weightage="20" keywordseo="Startups">startups</keyword> and angels in the country feeling irked. Both have different reasons for their worries. 

	The Angel community, although happy to see startups get 100% exemption for 3 years on profits, feels the Budget should also have ended the unfavorable treatment in investments made in unlisted companies by Alternative Investment Funds and Angel Groups.
 Currently, <keyword id="6365770" type="UNKNOWN" weightage="20" keywordseo="angel-investors">angel investors</keyword> pay a much higher tax on capital gains while taking a far higher risk as compared to publicly traded shares. Investments in unlisted companies or startups is taxed at 33% for short term and at 20 per cent for long term capital gains, with the holding period for long term capital gains as 3 years. In this Budget, the government has lowered the period from 3 to 2 years. Still, investors feel this anomaly can make the sector look unattractive at a time when investing in startups is already considered a risky bet. “We would have benefitted if capital gains tax regime for unlisted companies was aligned with that for listed companies. This would end the discrimination against domestic venture capital funds as foreign funds anyway pay no capital gains tax by investing from Mauritius and other treaty friendly countries,” said <keyword id="164917" type="PERSON" weightage="20" keywordseo="Saurabh-Srivastava">Saurabh Srivastava</keyword>, a serial entrepreneur, angel investor and VC. Another angel investor Padmaja Ruparel said: “Capital gains Tax exemption in regulated/ notified fund of funds, lowering the period from 3 years to 2 years for Long term Capital Gains in unlisted companies, <keyword id="3269156" type="UNKNOWN" weightage="20" keywordseo="SETU-fund">SETU fund</keyword> of Rs. 1000 cr, one day registration process for start-ups will all help to boost innovation and incubation. But, we had hoped that treating investments by AIFs and angel groups in unlisted companies would be aligned with the public market equity tax regime.” 

	Meanwhile. Startups were expecting more radical reforms in the Budget. “We welcome the the three-year tax holiday, but the fact that the Budget has retained MAT negates much of the advantages, as we have cash-flow problems in initial years," said Ravi Gururaj, chairman of Nascomm Product Council.

What’s this one thing startups and angels are complaining about after Mr Jaitley’s Budget?

<img class="gwt-Image" src="/photo/50357095.cms" style="width: 800px; height: 600px;" />Exiting a year where startups spread wings across various sectors ranging from e-commerce, hospitality to technology, the next year may see unexplored social impact sectors like healthcare and <keyword id="6355445" type="COMPANY" weightage="20" keywordseo="Education">education</keyword> become the preferred choice for budding entrepreneurs. Moreover, investors feel, much of the groundwork has been laid in 2015 for 2016 to become a watershed year for the emergence of a really strong <keyword id="138263" type="UNKNOWN" weightage="20" keywordseo="startup">startup</keyword> ecosystem in India. 
 
“We will have not only fresh entrepreneurs, but new innovation propositions in sectors like healthcare. Fintech startups is going to be very much part of the flavour. I also feel Agritech will start opening up which will bring valuable and high money into sectors that are extremely critical for India’s economy growth and development,” says Padmaja Ruparel, founder of Indian Angel Network. 
 Echoing her opinion, Saurabh Srivastava, co-founder at IAN and Nasscomm, says: “I see a lot of entrepreneurs creating solutions for what you would call the bottom half of the pyramid. In India, such ideas can also be economically very scalable because of the high poverty levels and the underlying opportunity there. Although we see <keyword id="107737" type="ORGANIZATION" weightage="20" keywordseo="Entrepreneurship">entrepreneurship</keyword> in many sectors, I think we will see lots happening in the social impact arena, medical devices that government has its focus on etc.” 
 Also, as the member of <keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword> panel on startups and Indian Aspiration Fund, Saurabh tells us the keen interest with which government bodies are working for creating a favorable ecosystem for Indian entrepreneurs. “A big focus area in SEBI committee is on how do we accelerate the flow of capital to startups, how more domestic capital should flow into startups. SEBI, Niti Aayog and several other wings are working on such areas and there is an amazing degree of openness and wish to support,” he says. 
 
Meanwhile, it seems the angel investor community is also expanding in India along with the rise of startup culture. Padmaja says: “Investment is like marriage for angel investors. They invest but what they look for is a divorce and hefty alimony. I think this cycle has started happening at Indian Angel Network (IAN), where people are getting cash exits and returns. I look at this as maturing of the angel ecosystem and I only see this growing in the coming year.” 
 
“Moreover, entrepreneurs today are also looking for fundings. The moment they get it, they will startup. It’s a symbiotic relationship between the two,” she adds.

It's no more Tech! Here's what will be the preferred choice for startups in 2016

<img class="gwt-Image" src="/photo/50947949.cms" style="width: 800px; height: 600px;" />With D-Day approaching fast, the <a href="http://www.businessinsider.in/searchresult.cms?query=startup+industry">startup industry</a> is eagerly speculating how well the Narendra-Modi led government will adopt and accommodate start-up friendly policies and initiatives in the upcoming Budget. 
 
<a href="http://www.businessinsider.in/Mr-Arun-Jaitley-heres-what-the-startup-industry-is-expecting-from-Budget-2016/articleshow/50685322.cms">A lot of expectations are riding on Arun Jaitley’s back</a>. As he inches closer to February 29, here are crucial recommendations of the Indian Angel Network, country's oldest and largest angel investor group, to the “pro-business” government before the Finance Minister finally unveils their startup plan. 
 
“We hope this budget would end one anomaly - treating unfavourably investments by AIFs and Angel Groups in unlisted companies. Currently investors of such companies pay a much higher tax on capital gains while taking a far higher risk as compared to publicly traded shares. We do expect that capital gains tax for AIF funds and angel group investors will be aligned to the current tax regime for investments made in listed shares,” says <a href="http://www.businessinsider.in/No-funds-for-your-start-up-Here-are-5-things-you-need-to-attract-angel-investors/articleshow/49323077.cms">Mrs Padmaja Ruparel, President, Indian Angel Network</a>. 
 
Meanwhile, <a href="http://www.businessinsider.in/Why-2015-was-the-year-of-Indian-Startups-tell-us-imminent-investors/articleshow/50355873.cms">Mr Saurabh Srivastava</a>, who is the past chairman of <keyword id="6372077" type="CITY" weightage="20" keywordseo="Nasscom">NASSCOM</keyword>, and is currently on the executive committee of <keyword id="6355001" type="CITY" weightage="20" keywordseo="FICCI">FICCI</keyword> and the co-founder of Indian Angel Network, shared with Business Insider detailed recommendations for Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> ahead of the D-Day. 
 He says: “The Startup India announcement was a great start. We are hoping that the budget would introduce the necessary measures to take it forward like <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">Income Tax</keyword> Exemption for Start ups, Process of defining and identifying start ups, Establishment of the Credit Guarantee Fund, Waiver of compliances/ Self Certification and Creation of the Rs 10,000 Cr provision for Funds of Funds activity.” 
 
He also said: “We also hope that the government would end one anomaly and that is of treating unfavourably investments by AIFs and Angel Groups in unlisted companies.” 
 
“Today, capital gains tax on investments in publicly listed companies are treated as long term capital gains and taxed at 0% if held for over one year and as short term if held for less than a year and taxed at 15%( plus STT in both cases). But investments in unlisted companies or start ups is taxed at 33% for short term and at 20% for long term capital gains, with the holding period for long term capital gains as 3 years,” explains Mr Srivastava. 
 
“These investments in unlisted companies take more risks, are illiquid and create new ventures. They should be treated more favourably or at least on par with trading shares on the stock exchange. 
This should be allowed at least for investments made by SEBI registered, widely held AIF Category 1 and Angel Funds. The AIFs can collect STT like stock exchanges on such transactions,” he adds. 
 Highlighting the advantages of this, Mr Srivastava says, “this will end the discrimination against domestic <keyword id="6357097" type="COMPANY" weightage="20" keywordseo="venture-capital">venture capital</keyword> funds ( AIFs) as foreign funds anyway pay no capital gains tax by investing from Mauritius and other treaty friendly countries. This will also nudge foreign funds to register with SEBI.”

Union Budget 2016: Angel investors make key recommendations to the Modi govt, here's what they are

<img class="gwt-Image" src="/photo/50356832.cms" style="width: 800px; height: 600px;" />2015 was the year that saw the <a href="http://www.businessinsider.in/searchresult.cms?query=startup">startup industry </a>in India come off age. While on the one hand, there were brave individuals starting up on their own, the year saw companies like Ola, <a href="http://www.businessinsider.in/searchresult.cms?query=Snapdeal">Snapdeal</a>, Quikr, <keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> and Paytm crossing the $1 billion in valuation to join the Unicorn club on the other. The rise of startups also led the angel investment community to take more risks than before. However, most importantly, all along India witnessed a Prime Minister who went the extra mile in encouraging the startup community by announcing several government measures -‘Startup India, Standup India’ being the latest one – while also showing the world the power of entrepreneurs back home. 
 
<a href="http://www.businessinsider.in/No-funds-for-your-start-up-Here-are-5-things-you-need-to-attract-angel-investors/articleshow/49323077.cms">ALSO READ: No funds for your start-up? Here are 5 things you need to attract angel investors</a> 
 
As the spectacular year draws to a close, imminent investors take us through the significant changes which both the startup as well as <a href="http://www.businessinsider.in/searchresult.cms?query=investor+">investor </a>community witnessed in 2015. Read on: 
 
STARTUP ECOSYSTEM BUILDING IN INDIA 
 “2015 has been a watershed year because there has been huge growth in the quality of startups that have come in,” says Saurabh Srivastava, cofounder of the Indian Angel Network and Nasscom. Happy to see an ecosystem building, he says: The government is beginning to encourage startups like never before as they also believe that startups can build wealth and employment. Moreover, people are seeing so many other successful ones with innovative ideas which are making good amount of money, solving ground problems and attracting global interest that they feel encouraged to do startups themselves. Also, there is huge interest among <keyword id="6365770" type="UNKNOWN" weightage="20" keywordseo="angel-investors">angel investors</keyword> to come in, invest and take more risks.” 
 
ANGEL INVESTMENT BECOMING AN ASSET CLASS: 
 
Mrs Padmaja Ruparel talks about the growth of angel investing community in India and how it has become an asset class. 
 
“It really is a class where first generation entrepreneurs like Saurabh, Narayanan Murthy and the likes – all middle class entrepreneurs who created garage to IPO kind of companies - have had a passion for entrepreneurship and have wanted to remain engaged in new innovations. They do this today by not only investing in young startups, but by mentoring and providing market access through their global network. This asset class has now moved beyond entrepreneurs. So, we are seeing lot of professional class investing and lot of second generation business house people also investing.” 
 
“On the other side, I feel starting up will become a career option soon. We are seeing entrepreneurs’ freshly out of college increasingly doing startups. One of our companies Mukunda Foods making tabletop dosa making machines, have youngsters who came out of college, created a prototype and are now delivering across nearly 9 countries. This is not to say that others aren’t. It’s also true that several experienced professionals are also building startups,” she says. 
 
SHIFT IN TRADITIONAL MINDSET AND APPROACH OF INVESTORS 
 Saurabh, who has nearly two decades of experience in <keyword id="6357455" type="EVENT" weightage="20" keywordseo="Funding">funding</keyword> startups, admits there has been massive change in the way investors look at startups today. 
 
“Investors are willing to put their money in more and more startups these days. 15-20 years ago investments were made only in IT companies, particularly those which had global appeal because growth came from overseas market. Today, India itself is a big market and we now see high quality entrepreneurs across variety of sectors – healthcare, IT, education, semi-conductors, hospitality, medical devices, ecommerce etc. A big shift in the investor approach has been to take the risk of investing in companies which target only the domestic market. Some of our best successes at IAN have come from companies catering to the Indian market,” he says. 
 
GEOGRAPHY NO MORE LIMITING FACTOR, INVESTMENT HAPPENING OVERSEAS 
 
Meanwhile, Padmaja feels opportunities lay galore for startups everywhere in the world when it comes to raising funds. Why? She explains: 
 
“IAN has set up its angel investment office outside the country. We are not only seeing entrepreneurs there, but actively investing too. The reverse is true as a lot of overseas investors are investing with us in companies that we are bringing the opportunities from. Geography is thus not a limiting factor anymore and that’s where we are able to make IAN a global platform where people from around the world can invest and get good returns,” says Padmaja. 
 
INDIA IS BEGINNING TO ACCEPT FAILURES 
 
Both Saurabh and Padmaja are of the opinion that failing does not minimalize chances of getting money from investors as there is increasing social acceptance for failures in India unlike before. 
 
“I think the concept of accepting failure was not there in India, but it is starting to get accepted. You try your best but it may not have worked for various reasons. I feel people who have not succeeded can be very good entrepreneurs because they have learnt from mistakes and have the hunger to succeed,” says Padmaja. 
 
Saurabh joins in to conclude: “When somebody has tried failed and wants to do it again, it shows character. It shows passion and commitment. An entrepreneur doesn’t always fail due to incompetence, there could be several other reasons say their partners let them down. They want to come back again and show the world what they can do. There has to be social acceptance for them and it is happening within the investor community gradually.” 
 
(Image credit: Thinkstock)

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