The sale of residential assets extended to March 2021

In a breather to assets proprietors who plan to sell their residential houses and invest the capital received in startups, Finance Minister Nirmala Sitharaman on July five extended the funding deadline by two years.

“The provision which lets in the exemption of capital gains from the sale of residential property on the funding of internet consideration in equity stocks of eligible startup shall be prolonged by using two years. Thus, the gain will be available for sale of residential assets on or before March 31, 2021,” Sitharaman stated in her Budget speech.


Under Section 54GB(5) of the Income Tax Act, 1961, long-term capital profits on the sale of residential assets might be exempt if the sale proceeds are invested in an eligible startup, furnished such switch befell before March 31, 2019.

“Considering the unique requests from startups to increase this timeline and in step with the goal of the government to liberalize the startup regime, the Union Budget has proposed changes to Section fifty-four GB(5) of the Income Tax Act, 1961, in phrases of which, the period of exemption of capital profits bobbing up from the sale of residential house for investment in startups, has been exempted of March 2021,” Atul Pandey, accomplice at Khaitan & Co, advised Moneycontrol.

It has also been proposed that minimum conserving of 50 percent shares in the startups be comfy to 25 percent.

The cutting-edge rule also states that the startup shall use the amount invested in buying a property and not transfer assets purchased within five years.

However, the finance minister has also proposed to loosen up the situation by limiting the transfer of new assets, being pc or laptop software, from the modern-day five years to three years.

According to experts, preserving new laptops and software for five years became not reasonable in any respect as computers and laptops and many others are possibly getting out of date in 3 years.

“To keep persevering with the investment momentum by using founders in startups, Budget 2019 has proposed to increase the investment duration from March 31, 2019, to March 31, 2021,” stated Gaurav Chadha, tax associate, EY India.

The enterprise expects this flow to promote startups’ growth as people will be encouraged to invest in the quarter, even for tax exemptions.

Out of over 30,000 anticipated start users, over 16,500 had been recognized via the government as of March 2019.
Startups inside the country raised $3.9 billion in funding from venture capitalists within the six months ended June 30. During the same duration of the previous year, the investment stood at $2.7 billion.

L&T Technology Services Q1 PAT was visible up to five.Nine% QoQ to Rs. 203.Eight cr: Prabhudas Lilladher

Prabhudas Lilladher has come out with its first area (April-June 19) profit estimates for the Technology zone. The brokerage house expects L&T Technology Services to file net earnings at Rs. 203.8 crores, up 5.9% sector-on-sector (up 2.9% 12 months-on-year).

Net Sales are predicted to increase with the aid of 3.4 percent Q-o-Q (up 20.6 percent Y-o-Y) to Rs. 1,389.1 crores, consistent with Prabhudas Lilladher.

Earnings earlier than a hobby, tax, depreciation, and amortization (EBITDA) are likely to upward thrust through 2 percentage Q-o-Q (up 29.6 percent Y-o-Y) to Rs. 254.2 crores.

Overweight on banking and financials: Marathon Trends PMS

Global markets are witnessing a bull run, but Indian markets have underperformed due to various domestic issues, stated Atul Suri, Chief Executive Officer of Marathon Trends PMS.

Nearly forty-seven of the 50 markets they track are tremendous in dollar phrases, and the common upside has been around 12-14 percent, he stated in an interview with CNBC-TV18.

Indian markets are up most effective 6-7 percent in greenback-denominated terms, he stated. Nifty did not push above 12,000 ranges, and eleven 650 became the level round elections lows, so that may be a consciousness factor for short-time period traders, he stated.

“There is an opening for Nifty among eleven, four hundred and eleven,600, and so in case the strain keeps; we may want to see these ranges; however, do now not see a huge sell-off within the Nifty,” stated Suri.

About author

I work for WideInfo and I love writing on my blog every day with huge new information to help my readers. Fashion is my hobby and eating food is my life. Social Media is my blood to connect my family and friends.
    Related posts

    Top Basement Ideas for Remodeling


    Membranes And Shingles: Modern Roofing Materials Explained


    Best Summer Tips for Keeping your Office Energy in Budget


    How To Choose The Right Plumber

    Sign up for our newsletter and stay informed !