wordpress blog stats
Connect with us

Hi, what are you looking for?

#Budget2013: Funds For Technology Incubators In Academic Institutions Get CSR Status; Startup Tax

In his budget speech earlier in the day, the Finance Minister P.Chidambaram announced that the funds provided to Technology Business Incubators (TBI) based within academic institutions and approved by the Ministry of Science and Technology or the Ministry of Micro, Small and Medium Enterprises, will qualify as CSR (Corporate Social Responsibility) expenditure.

This proposal follows amendments to the Companies Bill (pdf) in December 2012, which mandates corporate companies to spend 2% of its net profits as CSR. Therefore, this proposal will allow companies to invest up to 2% of its net profits in startups incubated in technology business incubators and account for it as CSR expenditure.

As of now, there are around 27 technology business incubators located inside academic institutions like National Institute of Design (NID), Indian Institutes of Technology (IIT), National Institutes of Technology (NIT), Indian Institutes of Management (IIM), Engineering colleges and other technical universities in the country. These incubators were set up by the National Science & Technology Entrepreneurship Development Board (NSTEDB), which was established in 1982 by the Government of India under the Department of Science & Technology.

Some of the companies which have incubated out of some of these incubators include Uniphore, Milaap, and MeshLabs among others.

Angel Funds to be included in Category I AIF:

Advertisement. Scroll to continue reading.

Last year, the government had introduced few clauses to Budget 2012, according to which if an investment received by a private company or an unlisted public company in return for shares, was in excess of the Fair Market Value (“FMV”) of the shares, it was to be considered as income in the hands of the company and chargeable to tax as “income from other sources”. This essentially meant that investors will be charged 30% income tax on this income.

In lieu of protests against this startup tax by the startup ecosystem, the government has now amended this clauses to exclude registered venture capital funds and angel investors from these clauses. The minister said that SEBI will prescribe requirements for angel investor pools, by which they can be recognised as Category I AIF (alternate investment funds) venture capital funds and angel funds can register with the SEBI to get exempted from these taxes.

Related: Budget 2013-14: Digital Business Expectations & Announcements – Live Updates

Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.


When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.


The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.


In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...


By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

You May Also Like


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ