Reading Comprehension Test 33

Start-ups are heaving a sigh of relief as the Finance Minister  announced measures to do away with the long pending contentious issue of Angel Tax, which many of them had to
cough up for raising Angel funding under Section 56 of the Income Tax Act Also, special administrative arrangements will be made by the Central Board of Direct Taxes for pending assessments of startups and redressal of their grievances. Start-ups have been assured that no inquiry or verification in such cases can be carried out by the Assessing Officer without obtaining approval of his supervisory officer. This provision will do away with much of the angst among start-ups who were subjected to aggressive questioning by the Income Tax department. A TV channel exclusively for start-ups under the Doordarshan boutique will be designed and executed by start-ups themselves and will also serve as a platform for promoting them, discussing issues affecting their growth, match making with VCs and for funding and tax planning, came as a pleasant surprise to many. Although it remains to be seen how it will be executed on the ground. The Budget sounded the bugle for fostering rural entrepreneurship for those depending on agriculture and traditional industries by announcing the setting up of 80 Livelihood Business Incubators and 20 Technology Business Incubators this fiscal with the aim to develop 75,000 skilled entrepreneurs in agro-rural industry sectors. “The Government has tried to broad base and foster entrepreneurship beyond metros to Tier 2 and 3 cities which is a good sign. And doing away with Angel Tax is welcome” said Bhaskar Majumdar, Managing Partner, Unicorn India Ventures

1.Which of the following statements can be said regarding the government’s sectoral thrust on start-ups in the
nation?

Start-ups are heaving a sigh of relief as the Finance Minister  announced measures to do away with the long pending contentious issue of Angel Tax, which many of them had to
cough up for raising Angel funding under Section 56 of the Income Tax Act Also, special administrative arrangements will be made by the Central Board of Direct Taxes for pending assessments of startups and redressal of their grievances. Start-ups have been assured that no inquiry or verification in such cases can be carried out by the Assessing Officer without obtaining approval of his supervisory officer. This provision will do away with much of the angst among start-ups who were subjected to aggressive questioning by the Income Tax department. A TV channel exclusively for start-ups under the Doordarshan boutique will be designed and executed by start-ups themselves and will also serve as a platform for promoting them, discussing issues affecting their growth, match making with VCs and for funding and tax planning, came as a pleasant surprise to many. Although it remains to be seen how it will be executed on the ground. The Budget sounded the bugle for fostering rural entrepreneurship for those depending on agriculture and traditional industries by announcing the setting up of 80 Livelihood Business Incubators and 20 Technology Business Incubators this fiscal with the aim to develop 75,000 skilled entrepreneurs in agro-rural industry sectors. “The Government has tried to broad base and foster entrepreneurship beyond metros to Tier 2 and 3 cities which is a good sign. And doing away with Angel Tax is welcome” said Bhaskar Majumdar, Managing Partner, Unicorn India Ventures

2.Which of the following is true about the government’s attitude toward the country’s startup economy?

Start-ups are heaving a sigh of relief as the Finance Minister  announced measures to do away with the long pending contentious issue of Angel Tax, which many of them had to
cough up for raising Angel funding under Section 56 of the Income Tax Act Also, special administrative arrangements will be made by the Central Board of Direct Taxes for pending assessments of startups and redressal of their grievances. Start-ups have been assured that no inquiry or verification in such cases can be carried out by the Assessing Officer without obtaining approval of his supervisory officer. This provision will do away with much of the angst among start-ups who were subjected to aggressive questioning by the Income Tax department. A TV channel exclusively for start-ups under the Doordarshan boutique will be designed and executed by start-ups themselves and will also serve as a platform for promoting them, discussing issues affecting their growth, match making with VCs and for funding and tax planning, came as a pleasant surprise to many. Although it remains to be seen how it will be executed on the ground. The Budget sounded the bugle for fostering rural entrepreneurship for those depending on agriculture and traditional industries by announcing the setting up of 80 Livelihood Business Incubators and 20 Technology Business Incubators this fiscal with the aim to develop 75,000 skilled entrepreneurs in agro-rural industry sectors. “The Government has tried to broad base and foster entrepreneurship beyond metros to Tier 2 and 3 cities which is a good sign. And doing away with Angel Tax is welcome” said Bhaskar Majumdar, Managing Partner, Unicorn India Ventures


3.Which among the following is /are correct regarding the TV channel that has been announced by the government in the Budget?

I. This new channel will be run by the government with the experts from the government organizations.
II. This new channel will be financed by the public sector banks with a fresh round of capital from the government only.
III. This new channel will attempt at saving the taxes of the startup founders by the experts

Start-ups are heaving a sigh of relief as the Finance Minister  announced measures to do away with the long pending contentious issue of Angel Tax, which many of them had to
cough up for raising Angel funding under Section 56 of the Income Tax Act Also, special administrative arrangements will be made by the Central Board of Direct Taxes for pending assessments of startups and redressal of their grievances. Start-ups have been assured that no inquiry or verification in such cases can be carried out by the Assessing Officer without obtaining approval of his supervisory officer. This provision will do away with much of the angst among start-ups who were subjected to aggressive questioning by the Income Tax department. A TV channel exclusively for start-ups under the Doordarshan boutique will be designed and executed by start-ups themselves and will also serve as a platform for promoting them, discussing issues affecting their growth, match making with VCs and for funding and tax planning, came as a pleasant surprise to many. Although it remains to be seen how it will be executed on the ground. The Budget sounded the bugle for fostering rural entrepreneurship for those depending on agriculture and traditional industries by announcing the setting up of 80 Livelihood Business Incubators and 20 Technology Business Incubators this fiscal with the aim to develop 75,000 skilled entrepreneurs in agro-rural industry sectors. “The Government has tried to broad base and foster entrepreneurship beyond metros to Tier 2 and 3 cities which is a good sign. And doing away with Angel Tax is welcome” said Bhaskar Majumdar, Managing Partner, Unicorn India Ventures

4.What is the opinion of the author regarding the TV channel that has been proposed to be set up by the government?

Start-ups are heaving a sigh of relief as the Finance Minister  announced measures to do away with the long pending contentious issue of Angel Tax, which many of them had to
cough up for raising Angel funding under Section 56 of the Income Tax Act Also, special administrative arrangements will be made by the Central Board of Direct Taxes for pending assessments of startups and redressal of their grievances. Start-ups have been assured that no inquiry or verification in such cases can be carried out by the Assessing Officer without obtaining approval of his supervisory officer. This provision will do away with much of the angst among start-ups who were subjected to aggressive questioning by the Income Tax department. A TV channel exclusively for start-ups under the Doordarshan boutique will be designed and executed by start-ups themselves and will also serve as a platform for promoting them, discussing issues affecting their growth, match making with VCs and for funding and tax planning, came as a pleasant surprise to many. Although it remains to be seen how it will be executed on the ground. The Budget sounded the bugle for fostering rural entrepreneurship for those depending on agriculture and traditional industries by announcing the setting up of 80 Livelihood Business Incubators and 20 Technology Business Incubators this fiscal with the aim to develop 75,000 skilled entrepreneurs in agro-rural industry sectors. “The Government has tried to broad base and foster entrepreneurship beyond metros to Tier 2 and 3 cities which is a good sign. And doing away with Angel Tax is welcome” said Bhaskar Majumdar, Managing Partner, Unicorn India Ventures


5.Which among the following is/are correct regarding the Angel Tax levied by the government on the startups in India?

I. Angel Tax is levied on companies that raise capital from the angel investors only and not from others sources.
II. Angel Tax is not defined in the Income Tax legislation and the government had to implement it separately.
III. Angel Tax is not going to be levied on the companies that go out of business from this year onwards.