THE MOST TRANSFORMING INCENTIVE TO START-UPS IN THE UNION BUDGET 2019

We always find it lucrative to talk about start-ups. But to actually make it real, one need to work on it and that is really difficult for most of us. We need to consider various factors before working on the start-ups such as marketability, demand, competition and incentives available for the start-ups. While considering factors, most of us easily calculate all other factors but always struggle to utilize the incentives in the most beneficial manner due to lack of knowledge and information. Incentives related to tax laws always make it difficult for the people with sparking aspirations to make them beneficiary. The very same difficulty would be eased with the readings of this article only. Recently, in the Finance Bill 2, most of us know it as Union Budget, the government of India has proposed one of the most transforming and needful incentive for all the start-ups.

Taxation is always an important matter to consider since it costs around 30% of the business profits. In Indian tax laws if any business incurs loss in any financial year the same can be carried forward to future years and can be set off against the future profits and reduces the tax burden on the entity on the fulfillment of the certain conditions. One of the two conditions to carry forward losses in case of the company is at least 51% of the total shares should be held by persons who beneficially held shares of the company amounting at least 51% of total shares on the last day of the year or years in which the loss was incurred. Further second condition for the start-ups, the government has already relaxed the law to provide with the carry forward of the loss if all shareholders of such company who held shares on the last day of the year or years in which the loss was incurred, continue to hold those shares on the last day of the previous year and such loss has been incurred during the first 7 years of incorporation of the start-ups. Both the above described conditions are applicable only to the companies where public is not substantially interested and the companies are allowed to carry forward the part of losses which was being retained by them in the year just preceding to relevant previous year.

Example- Suppose A (a company) incurs loss of 1 crore in 2016-17 and due to non-satisfaction of the above described conditions the company cannot carry forward the loss of 1 crore in year 2017-18 then it cannot not be retained by the company even if it satisfies the condition in year 2018-19. It is because once the loss becomes ineligible to be carried forward, it cannot be retained back in the subsequent years even on the satisfaction of the conditions prescribed.

AMENDMENT AND BENEFIT-

Providing with the BIGGEST relief to the START-UPS government has proposed to amend section 79 to provide that loss incurred in any year prior to the previous year, in the case of closely held eligible start-up, shall be allowed to be carried forward and set off against the income of the previous year on satisfaction of either of the two conditions stipulated and discussed above even if was diluted in any of the previous year. This means the government has provided the weapon to reclaim carry forward/ setoff of the loss which was diluted in any previous year. Let us understand it with the illustration-

Suppose A (an eligible start-up company) incurs loss of 1 crore in 2016-17, 5 crore in 2017-18. Then it can brought forward the loss of 6 crore in year 2018-19 but if in the year 2018-19 the mandatory conditions i.e. 51% holding by same persons or all shareholder in the start-ups on the last day of year in which loss was incurred still continue to hold all their share. If any of the above conditions is satisfied then only company can carry forward the loss of 6 crore in year 2018-19 for the next year otherwise the loss of 6 crore would be lost forever since in the Income Tax Act the loss which is brought forward can only be carried forward. In this case the loss of 6 crore would not be available to brought forward in 2019-20 hence it cannot be carried forward in any subsequent year. This was the condition prior to amendment but with the proposed amendment if the company satisfies any of the above 2 conditions in year 2019-20 then the company would be eligible to carry forward the loss of 6 crore in the year 2019-20 even if the loss was already diluted in the year 2018-19. Hence the government has provided the weapon to win the battle with the carry forward of losses in the hands of start-ups. In this way the proposed amendment has plugged the potential deprivation of 6 crore and now the start-ups can enjoy the additional benefit of carry forward of losses with this relaxation.

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THE BEST WAY TO LIVE IS TO GIVE an uncommon observation

Since our childhood we have got preaching about the attitude of giving. It’s the best feeling in the world to help others; this is what I have heard throughout my childhood and the best way to live is to give. But as I grew up, I started thinking that the preaching- the best way to live is to give is no longer valid. I thought though it is good to have the attitude of giving but that is all about feelings nothing more than that and it is not going to help me directly. The same question may arise in all of your minds. And all of you might be thinking; the preaching which has been taught since our childhood cannot be wrong and it must have some direct implications other than that feeling part also.

The question is totally realistic and the preaching could not be wrong. It sometimes depends on how we interpret the things which would give us a life changing formula. And today the same formula has shaped itself as the best way to live is to give. The formula told us to give. It has various implications but let’s focus on the one only.  The implication which we are taking today is within you and is the most important tool for the success. For that if you have not started giving just start giving as soon as possible and if you already started just don’t stop giving. Because, the best way to live is to give efforts. Efforts are the collective form of the forces which we apply in a direction to achieve the desired goals. And it is that force which takes us closer and closer towards our goal. This is not anything new it is people’s effort only which makes them great and immortal.

I think you all know about Mr. Steve Jobs. Let me ask you a difficult question, what is that he known for? You all would comfortably say Apple with a cute smile. It is going to hurt you when I would tell it is not true at all. It is not Apple but NeXT, he is known for. In the year 1985, Steven Paul Jobs was terminated from the Apple from the organization which he cofounded few years back. He had nothing left in his hands. He lost everything at the very same time except his desire to give efforts. He stopped everything in his life but didn’t stop giving efforts. With the very same desire and continuous efforts he started NeXT a new organization in the very same year. With all his efforts he showed the entire world his strength with the huge success of the NeXT and retained the chair of CEO of the Apple. Similar is the case with MS Dhoni. When he missed an opportunity to get selected in Indian team and joined Railways on his father’s wish, he left everything- his home, friends but didn’t stop giving his efforts on the ground. It was his efforts only which made him the most successful finisher and captain in the world. 

In the both cases, even going through the most difficult times of their life, the time no one wants to face in their life both the persons did one thing in common. They didn’t stop giving the efforts and this desire to keep giving, makes them the greatest in their respective fields. This shows the preaching is not at all invalid in this dynamic world also. If your intentions and interpretation is right and unique you will rule the world even with the traditional teachings, the only thing is you must have capability to see through in an uncommon way. It applies in every situation of life- exams, interview, business etc. All my dear, the most traditional teach-“When god is for you who can be against you”. It holds true in all cases when you start believing the fact; god has decided all good for you, the thing is you need to keep moving and giving efforts.

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"REFLECTION OF ME IS WE"- A CHALLENGE TO YOUR COMMUNICATION CAPABILITIES

The world where we all are living in is nothing but a complete illusion. It is the combination of our thought processes. The way we think, we pretend the whole world is that same. It is the state of the mind of the person which defines the world for him. It is universally applicable to all the individuals on the planet whether he may be rich or poor, child or aged person. It is the human tendency that we all look at the entire world, with our eyes only and this is the reason people have sympathy for others but not the empathy. We always believe there is only one angle to look the world and due to that only we get surprises over the tiny matter because we assert the outcome or process we are thinking is unique. And a small modification in outcome or the process surprises us a lot.

You all have observed that a person thinks that all others are feeling the same, what he is feeling. And it is the common situation with all, due to ideology of- “Reflection of me is we.” We are not even interested to know all facts and figures rather we apply our perception in every case uniformly without taking into consideration the individual variations. Recently, my friend has passed the CA IPC exam and his happiness even can’t be described in words. While celebrating his success, he was thinking all the people around the world are so happy and all should celebrate. He forgot many of our friends have failed too and they all must be dejected but he thought all are happy as he is. It is only because the world is nothing but an illusion or we can say it is the result of our uniform perception towards all. You may observe the similar thought process with any business man or even with any of your friends who trades. During demonetisation, I met my uncle and he was telling me government has made an excellent decision and all business would get benefit of the same as it is bringing the boom in the market. I think all we know that most of businesses have been hit hard due to same decision though he was saying me it is bringing the boom in the market. The reason is quite simple he was applying the situation of his business to all other businesses without thinking or taking care of the reality and the variations.

You all have heard people saying that there communication skill is very weak. It is good they are thinking about their communication skills. In the same line, we must think about the reason behind it; and the reason is ignorance. This ignorance is built up due to our ideology of- “Reflection of me is we.” We always think the image of the whole world is only what we think and it does not have its own real image and that is not true at all. We generally talk people as per our state of mind or ideology; a teacher talks about discipline with anyone as he generally talks with student, a happy person talks about happiness even to person who is sad and a sad talk person talk about sadness even to a happy man. Then how could anyone expect good communication in above mentioned cases? 

Nowadays, communication is the most important skill to decide your success chart. No one would know you until and unless you present yourself to them. And communication is the only and easiest way to present yourself to everyone. That’s why all must put efforts to improve their skill. To improve our communication skills, we must start talking with people as per their need, ideology and state of mind rather than as per ours. The day we begin talking with people as per their perception, at that very same time our communication skill would start improving. We also need to work on our observation skills, thinking horizon and our vision to step up towards the uncommon communication skills. We need to think beyond our common ideology of- “Reflection of me is we”, to become the uncommon communicator because- “Beyond common is simply the uncommon.” 

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NOTICING THE UNNOTICED DIRECTION AND GUIDANCE

People across the world are always desirous to know about their future. But have you ever thought of the reason behind it? Well there may be many reasons but the prime reason is that they all think, life would have been much easier if they come to know what is going to happen next. But they all are completely wrong because even if we come to know about the next move then also life could not be easier until and less we are ready to move further with the same dedication and hard work. You might be confused that even after knowing about our future how life would not become easier. But it is true, the moment we think to come across our future we lose our dedication and desire to work hard. The same moment we become lazy and try to search for an alternative and more convenient shortcut. That laziness makes us blind and we stop noticing the indication regarding the future rather we start relying on a magical stick which would tell us our future.

When God is for us, who can be against us. That almighty always shows his children the way but those lazy children do not understand his indications and make them the unnoticed direction and guidance. It is the laziness which is stalling us all from observing all such direct indications. Let us understand the extent of this laziness with one simple observation. I would like to tell you about a journey where these indications are clearly shown (future is clearly visible) and that too repeatedly, but in spite of all this, many fail in the very same journey. The journey what I am talking about is on the roads. If you have ever observed on the roads, it is clearly mentioned through traffic signals what is going to happen next. There is no other journey in the world easier than the roads which inform you in advance about all the things going to happen in the future which is the best part of this journey. Despite all such prior information many of us fail in this journey. The journey which tells you all about the future yet witnessing the high failure is really worrying and the reason is our laziness, ignorance and our compressed dedication and zeal to work harder. Even after knowing about our future, we must not lose our zeal, dedication and become more active to notice those unnoticed guidance, direction and traffic signals which would pave the way for our successful journey. 

One must think to improve his dedication and cautiousness rather than thinking of way to know his future, so that he can explore such unnoticed direction and guidance. It is not about knowing your future but it is your passion, desire, prudence and dedication which would make your journey successful. Life is like the game of the chess; each and every move has its consequences, only the thing is we need to be cautious enough to notice those consequences. There is no one in the world who would tell you directly about your future rather you should possess all the capabilities and skills which would let you notice those unnoticed direction and guidance that would determine the path of your successful journey. But if you don’t have this skill then you will collapse during the journey even after knowing about the future similarly like on road.

Noticing the unnoticed direction and guidance, is the most important or imperative task for a successful journey. It is not an easy task and requires various capabilities and skills. Moreover the required skills cannot be developed overnight it requires lot of patient and hard work. Though working hard is important, but there is something that matters even more-“Believing in yourself”

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AN UNCOMMON IDEA TO SUCCEED IN BUSINESS AND STARTUPS

India is the land of potential investors and business aspirants. The moment we think of business, we think of the startup. Generally startup can be described as an entity which has been established less than 5 years ago and has a turnover of less than ₹25 crore. India has its 65% of population below the age of 35 years. In India, a large section of people is thinking to start their own business and craft their dreams. Indian government is also taking initiatives towards the same and has launched Startup India Campaign on 16^th of January 2016 which provides various benefits such as freedom from tax in profit and capital gains for 3 years. The campaign would provide an ocean of opportunity to all entrepreneurs who want to shape their dreams into reality and want to achieve the destination they are waiting for.   

Startups are promoted by government on various aspects. But it is the individual who would nurture it with his skills, ideas and hard work. The task is not as easy as it seems to be. It requires a lot of courage to walk on a track which is completely unknown to you. It is difficult to begin and carry on your journey with startup but it is not impossible at all. It is your desire and zeal for success which would decide how you travel this difficult path of the startup and reach your destination. Though your attitude, faith and dedication would build your success story but no one can deny the fact that the innovative ideas are also important to define the fortune of the startup. Be it Flipkart, Just Dial, Paytm or even Ola, all of them came up with the different idea and have shown us the success of startups. So for the startups, you need to be innovative and different too, that means –“Think startup, Think uncommon.” 

The uncommon think is the biggest success mantra for the startups. It reminds me the concept which all of us have studied in our childhood, the survival of the fittest. But let me tell you one thing, in today’s world the survival of the fittest is no longer valid. I think all of you know very well about NOKIA, the cell phone manufacturer. Once the cell phone meant Nokia, but now it stands nowhere. The fittest brand was having more than 70% of market share in 2005 when it was offered Android as operating system. Nokia was at its peak and was dominating the cell phone industry completely, but with the launch of Android cell phone in 2008 and I-phone in 2007, it lost its dominance.  Till 2007 Nokia was having almost 65% of cell phone market share and in 2009 it was 2x of Apple and 4x of Samsung but now its presence is next to nothing. During the innovation of Android and IOS, Nokia was having everything. It could have even bought Android and IOS both. Though being the fittest, and having everything Nokia could not managed to survive after 2012-13. And the reason is only one thing its slow responses and its non- adaptability. 

Nowadays, the fitness of any business or startups does not ascertain its survival. It is always good to be the fittest as it provides business with lots of advantages but it is not enough always for its survival. Similar is the case with startups, one must focus on the innovative ideas to begin, which would provide the uncommon advantage and always think of upgrading its responsiveness from passive to active and from active to dynamic to successfully run his startup. In the long run, it is not fitness or health of business or startup which would decide its fortune rather ability to adapt and agility to response would decide its fortune.     

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Raining foreign investment and its possible impact on Indian economy

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