Hotline: 1800 102 2007
X
Loading
Search Business Opportunities
2011-07-21

SME exempted from Capital Gain Tax

SME exempted from Capital Gain Tax


Finance ministry has approved a proposal to exempt small and medium enterprises (SMEs) from capital gains tax . "One of the key proposals in the National Manufacturing Policy to improve access to finance for SMEs was the exemption from capital gains for investment in an enterprise as is done in the case of investment in residential property," said R.P. Singh, secretary, department of industrial policy and promotion (DIPP) at a meeting on the policy.

"The in principle nod to the proposal by the revenue department would go a long way in enabling a large number of entrepreneurs to raise equity by selling ancestral properties and raise their level of investments and thereby boost employment," he added.

The policy aims at reducing the intrusion of government departments in the affairs of business.

Singh, however, added that the labour department had certain reservations to the idea, citing International Labour Organisation regulations as benchmarks and sovereign functions as being paramount.

"These are not sovereign functions, but are statutory functions of the government," he said.

Hoping that the proposal would be accepted by the finance ministry, Singh said that the exit mechanism proposed in the draft manufacturing policy seeks to decouple the disposal of assets from labour dues, a concept that has found favour with the ministry of corporate affairs.

The proposal would facilitate expeditious re-deployment of assets belonging to non-viable units as such disposal of assets would be independent of settlement of dues of labour.

Singh also urged the industry to have an independent dialogue with the labour ministry on issues such as contract labour.

Related opportunities
  • Kids Entertainment Zones
    Little Kickers is UK’s biggest and most successful pre-school football..
    Locations looking for expansion Oxon
    Establishment year 2002
    Franchising Launch Date 2002
    Investment size Rs. 5lac - 10lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Blewbury Oxon
  • Business DetailsBelow The Waist is a MBO for Male Bottom..
    Locations looking for expansion Rajasthan
    Establishment year 2014
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 300 - 500 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Jaipur Rajasthan
  • Robotics & Technical Training
    IndiaFIRST™ ROBOTICS - a name known for India’s First ever Modular robots..
    Locations looking for expansion Maharashtra
    Establishment year 2009
    Franchising Launch Date 2013
    Investment size Rs. 50 K - 2lac
    Space required 800 sq. ft.
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Pune Maharashtra
  • Tattoo, Piercing & Nail Art
    About Nail LoungeThe premium destination for sophisticated hand and feet..
    Locations looking for expansion Maharashtra
    Establishment year 2007
    Franchising Launch Date 2011
    Investment size Rs. 10lac - 20lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities