The ‘angel tax’ conundrum
The investor community, particularly those in the venture capital and private equity space, are in a bit of disbelief on account of the recent budget announcement that proposes to amend Section 56(2)(viib) of the Income-tax Act, 1961 (“the Act”). Hitherto applicable to resident investment in ‘closely-held’ companies (typically private limited companies), any share premium over …
The elusive clarity on taxation of deferred consideration under the Indian Income Tax Act
Background M&A transactions oftentimes adopt a ‘deferred consideration’ mechanism, to fulfil the purchase consideration payable on such transactions. Deferred consideration refers to consideration, which is/ will be payable in the future, rather than at the time of disposal of an asset, depending on the fulfilment of conditions agreed upon between the buyer and seller. These …
ESG REPORTING AND ITS FRAMEWORK IN INDIA
INTRODUCTION With aggregate ESG assets expected to exceed USD 50 trillion by 2025 (representing more than one-third of the aggregate projected global assets under management (AUM))[1] together with the backing of prominent investors, such as BlackRock and Brookfield[2], ESG investing can hardly be described as merely an investing trend. In India, for example, the AUM …