TV Channel for Startups

The first Budget of the new Government (Budget 2019) announced the launch of a television channel, which is specifically meant for nurturing and supporting startup activity in the country. It is proposed to serve as a platform for promoting startups, discussing issues affecting their growth, match-making with venture capitalists and for funding and tax planning. This article covers this budgetary announcement in detail.

Mode of Implementation

The channel for startups will be set up under the purview of state-run broadcaster Doordarshan and will be designed and managed by startups themselves. The channel would promote new businesses and enable matchmaking with venture capitalists. Moreover, it would provide resources for tax planning.

Featured Programmes

The program covers the challenges faced by start-ups, fund-raising, access to venture capital funds and tax planning, among other things.

What is Envisaged?

Experts suggest that the initiative could help in generating awareness about entrepreneurship among the youth in smaller towns and cities, considering that India is the world’s third-largest startup ecosystem. Also, this allows SMEs and startups to go mainstream and be considered as thought leaders. The Government initiative may later be adopted by private TV channels.

E-Verification System

The Finance Ministry has proposed an e-verification system to spot potential investors in startups and the source of his/her funds. Angel Investors will not be scrutinized if they file the required declarations. Funds raised by startups will not be requiring any scrutiny from the Income Tax Department. This effectively means that no inquiry or verification would be carried out by the Assessing Officer without the authorization of the Supervisory Officer. These announcements arrive when the Government is in pursuit of stimulating the growth of the economy.

Grievance Redressal

The Ministry of Finance has declared that special arrangements will be made by the Central Board of Direct Taxes (CBDT) for pending assessments of start-ups and grievance redressals.

Startup Initiatives at a Glance

Budget 2019 concluded with the following announcements for startups:

• Easing of angel tax for startups, by taking away the scrutiny of the Income Tax Department.
• Implementation of an e-verification mechanism for establishing investor identity and source of funds for startups.
• Interest subvention of 2% for GST-registered MSME in fresh or incremental loans.
• The continuation of Stand-Up India Scheme till 2025.
• New television channels for start-ups.
• Extension of pension benefits to retail traders with an annual turnover of less than INR 1.5 crore.
• Proposal for the creation of a new payment platform for MSMEs.

About the Author

SREERAM VISWANATH K
Post By IndiaFilings.

Updated on: July 8th, 2019