The Department for Promotion of Industry and Internal Trade (DPIIT) has brought relaxation in the income tax rules related to residential properties' sale and carry-forward of losses, in order to facilitate fundraising by start-ups.The relaxation laws are part of the 'Startup India Vision 2024' that's been prepared by the DPIIT.The DPIIT recommended amendments in Section 54GB of the Income Tax Act, that is, capital gain on transfer of residential property not to be charged in certain cases and Section 79 that states, carry forward and set off of losses would be done for specific companies.The DPIIT has proposed to reduce shareholding requirements of founders from 50% to 20% and compulsory tenure from 5 years to 3 years. iv. Start-up promoters need to hold 100% shares for carrying forward of losses.
