It was recently reported by many news agencies that the Income Tax department is in discussions about levying taxes on startups that have witnessed a down-round valuation. According to reports, this tax would be levied on the premium received by the company during the first round. The department here is of the opinion that the premium received by the company then was more than its fair market value (FMV).

Alok Patnia written this article on yourstory.com analyzing the changes in the funding scenerio among the Indian Startups.

Alok Patnia, CEO of Taxmantra.com has been actively involved in the start-up sector of India. He has been advising and mentoring a huge number of start-ups by providing them with necessary hand holding with regards to various issues like Entity Structuring, Funding, Tax and Regulatory compliances and allied issues. He is great insights on the business starting-up and maintenance issues. He is a qualified Chartered Accountant having post qualification exposure with Ernst and Young and KPMG at Bangalore.

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