<div style="float: left;">
	<img align="" alt="Investors pick wrong people to manage their money" class="imgCont" height="464" src="http://bsmedia.business-standard.com/_media/bs/img/article/2016-11/24/full/1480007097-4474.jpg" style="border: 1px solid #DDD; margin-right: 10px; padding: 1px; float: left; z-index: 0;" title="Investors pick wrong people to manage their money" width="620" />
	<div>
		In order to revive the interest of global investors in Indian start-ups, the Budget is likely to give long-term capital gains tax exemption to angel investors who put money in firms that are in the&nbsp;</div>
	<br />
	<div>
		early stages of operations and have not had any tie-up on funding.</div>
	<br />
	<div>
		Entities that invest in a company&rsquo;s formative years are at the highest risk, and in the current tax structure, they are more liable to being taxed as compared to low-risk ones.&nbsp;</div>
	<br />
	<div>
		There is no long-term (if the shares are held for more than one year) capital gains tax on shares of listed companies, but the securities transaction tax is imposed on the purchase and sale of&nbsp;</div>
	<br />
	<div>
		shares.</div>
	<br />
	<div>
		According to sources in the information technology ministry, start-up investment is likely to have a similar arrangement.&nbsp;</div>
	<br />
	<div>
		Similarly, the government is planning to impose the short-term capital gains tax on angel investors at 15 per cent, which is the rate on the stock exchanges.</div>
	<br />
	<div>
		Industry experts say these reforms are needed to win back the trust of investors, which took a hit last year.&nbsp;</div>
	<br />
	<div>
		&ldquo;These reforms have been requested for a while now and if these happen it would be a sensible thing to do. A person investing in an early-stage start-up is taking a lot of risk, and the treatment&nbsp;</div>
	<br />
	<div>
		meted out is adverse. A sensible thing would be making the tax structure more conducive,&rdquo; said Saurabh Srivastava, chairman, Indian Angel Network.</div>
	<br />
	<div>
		Last year, the amount of investment in Indian start-ups dropped to less than half of the one in 2015, though the government organised events such as &lsquo;Startup India&rsquo; and invited global investors.</div>
	<br />
	<div>
		While in 2015 around $9 billion was invested in 1,005 deals, last year it was $4 billion in 1,040 tie-ups, which, according to experts, showed that angel investors were not&nbsp;</div>
	<div>
		willing to go for broke.</div>
	<br />
	<div>
		Many companies shut shop last year owing to either a lack of funds or mismanagement. As many as 22 food tech companies, seven online market places, and three logistics companies closed down.</div>
</div>

Govt planning to impose the short-term capital gains tax on angel investors at 15 per cent, which is the rate on the stock exchanges

Investors pick wrong people to manage their money

Buzzing :

Tax on angel investors may be streamlined

Govt planning to impose short-term capital gains tax on angel investors