Startup capital gains tax needs change: Cashify CFO

Subodh Garg, Chief Financial Officer, Cashify

“India is an emerging hotspot for mobile manufacturing. To encourage make in India and take full advantage of this economy-boosting strategy, the government needs to lower the GST rate on mobile phones in the next budget. .

ESOPs are growing in popularity in the startup industry. Additionally, to make the ESOP a more favorable offer and enable startups to attract top talent, the ESOP should be taxed at the point of liquidity. Currently, these are taxed upon conversion into shares. Upon conversion, employees must pay taxes out of their own pocket.
In addition, capital gains from the sale of shares in privately held companies are taxed at a higher rate. In order to attract more investment to startups, capital gains from startups should be taxed at the same tax rate as listed companies. ”