A brief insight into the framework issued by SEBI for Operation of Gold Exchange in India

Sourabh Agarwal
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A brief insight into the framework issued by SEBI for Operation of Gold Exchange in India

Securities and Exchange Board of India on 10th Jan,2022 issued a circular providing the framework for operationalizing the Gold Exchange where the metal will be traded as Electronic Gold Receipts (EGRs). 

The Circular came after SEBI on September 28, 2021 approved the framework for Gold Exchange and SEBI (Vault Managers) Regulations, 2021 which was notified by the govt on 31.12.2021 and vide Gazette notification dated December 24, 2021 the Govt of India declared “electronic gold receipts” as ‘securities’ under Section 2(h)(iia)  of the  Securities  Contracts  (Regulation)  Act  1956 and this paved way for this circular providing framework for operationalization of Gold Exchange in India

The circular provides that the  instrument for  trading  in  Gold  Exchange  /Segment shall  be referred to as ‘Electronic Gold Receipts’ (EGR) which has been notified as  ‘securities’ under Section 2(h)(iia) of the Securities Contracts (Regulation) Act ,1956.

Further, the supply of the physical gold, to be converted into EGR, shall be the  fresh  deposit  of  gold,  coming  into  the  vaults – mentioned the circular.

The stock  exchange/s  desirous  of  trading  in electronic  gold  receipts (EGRs) may apply to SEBI for approval of trading of EGRs in new segment and the circular shall come into the force with immediate effect : said the regulator

It has also mentioned that a common interface will be developed by Depositories, which  will  be made accessible  to  all  the  entities  i.e. Vault Managers, Depositories, Stock Exchanges and Clearing Corporations.

The circular divides the entire transaction into three tranches which are named as follows:

  • First Tranche: Creation of EGR
  • Second Tranche: Trading of EGR on stock exchange/s
  • Third Tranche: Conversion of EGR into Physical Gold

In the first tranche 

The vault managers on  receipt  of  physical  gold  shall  record  the relevant information in the common interface and create the EGR. The EGR shall be created at the behest of the depositor (or owner of the gold) intending to convert physical gold into EGR. and he shall ensure that no EGR is created without the presence of corresponding physical gold in its vaults. The EGR will reflect in the demat account of the beneficial owner maintained with the Depository Participant. The   Depository   shall   take   necessary   action   to   make   EGR/s tradeable on the stock exchange/s.

In the second tranche 

The stock exchanges shall allow trading of the EGRs on a continuous basis. Further, the Depositories shall share information pertaining to the creation of EGR/s, with the stock exchanges and clearing corporations on a periodic basis. Further, the  Clearing  Corporation  shall  settle  the  trades  executed  on  the stock exchange/s, by way of transferring EGR/s and cash to the buyer and seller of EGR/s, respectively.

In the Third tranche 

Beneficial owner of  EGR intending to obtain physical gold against the EGR/s shall request the Depository for the same. The Depository, in turn shall forward such request/s to the Vault Manager. The Vault Manager after delivering the gold to the beneficial owner and simultaneously extinguishing such  EGR/s,  shall  share  the  required  data  with  the  Depository  for reconciliation. The Depository, in turn, shall send the information about the extinguished EGR/s,  to  the  stock  exchange/s  and  clearing  corporation/s  to  carry  out necessary revision in the records.

Further, the circular also provides for the Fungibility and the Inter- Operability of the EGR which are as follows :-

  1. Fungibility means , the EGR’s created by the Vault Manager/s, shall not be linked with the unique bar reference number of the physical gold, i.e., gold deposited against EGR1 can be delivered against conversion of EGR2 into gold (for the same contract specifications).
  2. “Inter-operability  between  Vault  Managers”  means the physical gold deposited  at  one  location of  a Vault  Manager,  can  be  withdrawn  from different  location  of  same  or  different  Vault  Manager (depending  on  the availability of physical gold).
  3. The  aforementioned  provisions would  allow  the  Depository  to  facilitate withdrawal of physical gold from the preferred vault location of the buyer, to  the  extent  possible,  and possibly, save upon the cost of  withdrawal of gold from the vaults.

In this way, the SEBI has proposed the operations of the New Gold Exchange. The above posts just mentions the highlights of the circular and the whole circular can be accessed at SEBI’s Website

No Income Tax Return required to be furnished u/s 139(1) by specified persons: CBDT

Tithi Shah
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No Income Tax Return required to be furnished u/s 139(1) by specified persons: CBDT

CBDT vide Notification No.119/2021/F. No. 225/76/2021-ITA.II. dated 11 October,2021 exempts the following class of persons subject to certain conditions specified from the requirement of furnishing a return of income under section 139(1) of the IT Act,1961 from assessment year 2021-2022 onwards :-

S.NoClass Of PersonConditions
1. (i) a non-resident, not being a company;
or
(ii) a foreign company
 (i) The said class of persons does not earn any income in India, during the previous year, other than the income from investment in the specified fund referred to in sub-clause (i) of clause (c) of Explanation to clause (4D) of section 10 of the said Act; and

(ii) The provisions of section 139A of the said Act are not applicable to the said class of persons subject to fulfillment of the conditions mentioned in sub-rule (1) of rule 114AAB of the Income-tax Rules, 1962 (hereinafter referred to as “said rules‟).
2. a non-resident, being an eligible foreign investor. (i) The said class of persons, during the previous year, has made transaction only in capital asset referred to in clause (viiab) of section 47 of the said Act, which are listed on a recognized stock exchange located in any International Financial Services Centre and the consideration on transfer of such capital asset is paid or payable in foreign currency;

(ii) The said class of persons does not earn any income in India, during the previous year, other than the income from transfer of capital asset referred to in clause (viiab) of section 47 of the said Act; and

(iii) The provisions of section 139A of the said Act are not applicable to the said class of persons subject to fulfillment of the conditions mentioned in sub-rule (2A) of rule 114AAB of the said rules

Explanation.-For the purposes of this Notification. –

(a)“eligible foreign investor” means a non-resident who operates in accordance with the Securities and Exchange Board of India, circular IMD/HO/FPIC/CIR/P/2017/003 dated 04thJanuary, 2017;

(b) “International Financial Services Centre” shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);

(c) “recognised stock exchange” shall have the meaning as assigned to it in clause (ii) of Explanation 1to sub-section (5) of section 43 of the said Act.

The above exemption from the requirement of furnishing a return of income shall not be available to the above mentioned class of persons where a notice under section 142(1) or section 148 or section 153A or section 153C of the said Act has been issued for filing a return of income for the assessment year specified therein.

Reforms in Taxability of ESOP’s (Equity Stock Option Plans)

Meghal D Thakker
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Reforms in Taxability of ESOP’s (Equity Stock Option Plans)

What is an Employee Stock Option Plan (ESOP)?

An employee stock ownership plan (ESOP) is basically a plan given to employee’s wherein subscription to the same gives employee(s) ownership interest in the company. ESOPs give the sponsoring company, the selling shareholder, and participants receive various tax benefits, making them qualified plans. Companies often use ESOPs as a corporate-finance strategy to align the interests of their employees with those of their shareholders. ESOP are generally issued at a discounted price than the fair value of the shares.

Head of Taxability

As ESOPs are generally issued in lieu of Remuneration/ Salary and thus can be categorized as a part of Salary, they are taxed under the head ‘Income from Salary’.

Prior taxation of ESOP

The Income tax Act through Section 17(2) has categorized the ESOPs compensation as ‘perquisites’ and the value of such perquisites is taxed as income from salary in the hands of employees. The value of such ESOPs is computed as per the Rule 3(8)(ii) of Income tax Rules. The value of ESOPs is determined as on the date of exercise of options and not on the date of allotment. However, the tax payment liability is relevant to the date of allotment of shares. For instance, Mr. Shinde was eligible for ESOP by his employer for allotment of 1000 shares at ₹50 apiece. He exercised the option in March-2021 (F.Y. 2020-21), however, the company allotted the shares to him in December 2021 (F.Y. 2021-22). The fair value of shares of company in March 2021 was Rs.100 and that in December 2021 was ₹150. The value of perquisites of Mr. Shinde is determined at ₹ 50000/- [(100-50) x 1000]. The employer is required to include this amount of ₹ 50000/- in his Form 16 as valuation of perquisites and deduct TDS. However, the employer is required to do this in next financial year 2021-22 when the shares were finally allotted and not in the year of exercise of option.


The second incidence of tax on ESOP arises when the allottee sells those shares. From the above example, suppose that Mr. Shinde sold 500 shares for a total amount of ₹200,000/- in February 2025. Then in FY 2024-25, he will have to pay tax on capital gains income on sale of such shares. This shall be computed by deducting the cost of such shares from the sale value. And such cost shall be the amount determined as perquisites plus the amount he paid. Mr. Shinde will accrue capital gains income of ₹150000 (₹200000-50000) in F Y 2024-25.


Thus, ESOPs give rise to tax outgo at two times, one at the time of allotment as income from salary and at the time of sale as income from capital gains.

What is the relief from F Y 2020-21?

This Budget has touched the first incidence of tax i.e. income from salary with TDS thereon and did not disturb the second incidence of tax i.e. income from capital gains. The changes brought in by Budget have implications for the employee as well as the employer company/LLP.

What are the impacts on employee and employer?

The employees are required to include the amount of taxable ESOP in their Income tax return (ITR) to be filed for assessment year 2021-22 and thereafter. This means they must plan their transactions in the current financial year. The tax amount on the income component related to ESOPs need not be paid by them while filing ITR nor the TDS needs to be deducted by the employer on this component. This Budget has deferred the payment of tax on such income. This has effectively eased the anxiety related to cash outgo on the unrealized income of the employees. So, from financial year 2020-21, the TDS shall not be deducted nor the tax on the said income be paid while filing ITR next year. However, relevant amount of tax needs to be paid within 14 days from any of the following events, whichever is earliest:

  1. after the expiry of 60 months (5 years) from the end of the relevant assessment year; or
  2. from the date of the sale of such ESOP shares by the assessee; or
  3. from the date of the taxpayer ceasing to be the employee of the ESOP allotting employer,

In case the employer did not deduct TDS and pay to the Government as per above deadlines, then the employee himself must pay the tax according to the same dates. The rates of tax and TDS in such cases shall be the one applicable for the year in which ESOP was allotted.

Illustration

Mr. Shinde in the example cited above does not sell his shares nor leaves the employment. In such case, for assessment year 2021-22, Mr. Shinde has to include the amount of ₹50,000/- in his ITR as income from salary but not pay the tax on the same. Since he is in continuous employment with his employer, he will have to pay tax in assessment year 2025-26. He does not need to include the said amount in his ITR but only in computation of tax and pay the tax as per the rates applicable for assessment year 2021-22. So, for assessment year 2025-26, his tax liability will be increased by the tax on ₹50,000/- which was deferred from assessment year 2021-22. This tax needs to be paid either by Mr. Shinde on or before 14/04/2026 or his employer must deposit his TDS on or before this date.

Who are benefited by this tax deferment ?

Not all the enterprises and companies giving out ESOPs are benefited by this move is beneficial to those start-ups which fulfill certain conditions-

  1. the start-up must be incorporated between 01/04/2016 and 31/03/2022
  2. the total turnover of the start-up must be less than ₹100 crores for the year in which benefit is sought
  3. It must be certified as eligible start-up by the Inter-Ministerial Board of the Government of India.

No Tax to be deducted under Section 194A of Income Tax Act,1961 on Scheduled Tribes: CBDT

Tithi Shah
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No Tax to be deducted under Section 194A of Income Tax Act,1961 on Scheduled Tribes: CBDT

According to a recent notification by Central Board Of Direct Taxes (CBDT) vide Notification No. 110/2021/F. No. 275/27/2021-IT(B) dated 17.09.2021, no tax shall be deducted under section 194A of the Income Tax Act,1961 on payment made by a Scheduled Bank located in a Specified Area to a member of Scheduled Tribe as referred to in section 10 (26) of the Income Tax Act,1961 subject to following conditions:

(i) the payer satisfies itself that the receiver is a member of Scheduled Tribe residing in any specified area, and the payment as referred above is accruing or arising to the receiver as referred to in clause (26) of section 10 of the said Act, during the previous year relevant for the assessment year in which the payment is made, by obtaining necessary documentary evidences in support of the same;

(ii) the payer reports the above payment in the statements of deduction of tax as referred to in sub-section (3) of section 200 of the said Act; 

(iii) the payment made or aggregate of payments made during the previous year does not exceed twenty lakh rupees.

Section 10(26) has list down following areas as ‘Specified Area’:

(a) Any area specified in Part I or Part II of the Table appended to paragraph 20 of the Sixth Schedule to the Constitution;

(b) The States of Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura;

(c) The areas covered by notification no. TAD/R/35/50/109, dated the 23-02-1951, issued by the Governor of Assam under the proviso to paragraph 20(3) as it stood immediately before the commencement of the North-Eastern Areas (Reorganisation) Act, 1971; or

(d) The Ladakh region of the State of Jammu and Kashmir.

2. ‘Scheduled bank’ shall have the same meaning as assigned to it in clause (e) of section 2 of the Reserve Bank of India Act, 1934.

Section 194A

Interest other than “Interest on securities”

194A. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than income by way of interest on securities, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force :

Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed [one crore rupees in case of business or fifty lakh rupees in case of profession] during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.]

All you need to know about the Production Linked Incentive Scheme announced for Textile Sector.

Sourabh Agarwal
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All you need to know about the Production Linked Incentive Scheme announced for Textile Sector.

Union Cabinet on 08th,September 2021 has approved the Production Linked Scheme for Textiles for MMF (Manmade Fabric) Apparel, MMF Fabrics and 10 segments/ products of Technical Textiles with a budgetary outlay of Rs. 10,683 crore.

PLI for Textiles along with RoSCTL, RoDTEP and other measures of Government in sector e.g., providing raw material at competitive prices, skill development etc.  will herald a new age in textiles manufacturing.

PLI scheme for Textiles is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs. 1.97 lakh crore. With the announcement of PLI Schemes for 13 sectors, minimum production in India is expected to be around Rs. 37.5 lakh crore over 5 years and minimum expected employment over 5 years is nearly 1 crore.

PLI scheme for Textiles will promote production of high value MMF Fabric, Garments and Technical Textiles in country. The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments. This will give a major push to growing high value MMF segment which will complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade, resultantly helping India regain its historical dominant status in global textiles trade.

Need of Production Linked Incentive Scheme for Textiles

The Technical Textiles segment is a new age textile, whose application in several sectors of economy, including infrastructure, water, health and hygiene, defense, security, automobiles, aviation, etc. will improve the efficiencies in those sectors of economy. Government has also launched a National Technical Textiles Mission in the past for promoting R&D efforts in that sector. PLI will help further, in attracting investment in this segment.

Different Types of Investments possible in the scheme.

1)    Any person, (which includes firm / company) willing to invest minimum Rs. 300 Crore in Plant, Machinery, Equipment and Civil Works (excluding land and administrative building cost) to produce products of Notified lines (MMF Fabrics, Garment) and products of Technical Textiles, shall be eligible to apply for participation in first part of the scheme.*

2)    In the second part any person, (which includes firm / company) willing to invest minimum Rs. 100 Crore shall be eligible to apply for participation in this part of the scheme.

Priority to development of textile Industry in Backward Areas.

The priority will be given for investment in Aspirational Districts, Tier 3, Tier 4 towns, and rural areas and due to this priority Industry will be incentivized to move to backward area. This scheme will positively impact especially States like Gujarat, UP, Maharashtra, Tamilnadu, Punjab, AP, Telangana, Odisha, etc.

Benefits of the Scheme – Investment and Employment

It is estimated that over the period of five years, the PLI Scheme for Textiles will lead to fresh investment of more than Rs.19,000 crore, cumulative turnover of over Rs.3 lakh crore will be achieved under this scheme and, will create additional employment opportunities of more than 7.5 lakh jobs in this sector and several lakhs more for supporting activities. The textiles industry predominantly employs women; therefore, the scheme will empower women and increase their participation in formal economy.

Are Shipping Aggregators Important for eCommerce Businesses?

Vikram@123
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Are Shipping Aggregators Important for eCommerce Businesses?

Most business owners and professionals wish to achieve skyrocket sales and exceptional customer service. Do you have a growing number of orders that are not fulfilled on time? How would you decide which shipping aggregator is best for you if you did not know how to identify it? To optimize logistics operations for your business, you must evaluate your current shipping service provider. Any eCommerce business can achieve its daily goals through the implementation of efficient shipping and warehousing operations. It’s time to achieve your business productivity and product shipment goals by having similar systems.

Whenever you are doing business online, you are going to receive bulk orders today but a lesser number of orders tomorrow. In order to increase the success rate, business owners offer innovative services and innovative products. Also, some people like to compare their steps with potential competitors by looking for low-investment businesses.

Bulk-order businesses rarely get a grace period for delivering their orders, which can affect their relationships with clients and eventually their reputation in the market. When online sellers work with a shipping aggregator offering comprehensive logistics services, they can make sure their products reach their customers on time at a competitive price. Companies can make a huge difference in the shopping experience of their customers by utilizing the advanced technology of these logistics providers. Taking a closer look at logistics aggregators, let me explain how they can benefit your business.

What is a Shipping Aggregator?

In order to optimize the logistics of online sellers, Shipping Aggregators or Logistics Aggregators are generally partnered with multiple courier companies. Among other features, NimbusPost is a company based in India that offers high-quality courier services at the lowest cost.

In order to provide multiple courier options, shipping aggregators partner with third-party courier companies. A written agreement between business partners or associates is required, regardless of the type of industry. To protect clients from losses and potential fraud, shipping companies should do the same.

Why do you need a shipping aggregator?

A local courier company cannot fulfill your requirement within a reasonable budget if your business gets 500 to 1000 orders a month. You can get multiple options for couriers through a shipping aggregator at this point. Further, shipping aggregators add these features and advantages to e-commerce firms:

  • Pin codes reach a wide audience
  • E-commerce channels and marketplaces are integrated with APIs
  • India’s most reliable courier partners at your fingertips
  • Fast shipping reduces RTO
  • A single platform for managing multiple carriers
  • The ability to pay in multiple ways
  • Charges for shipping that are competitive
  • Remit CODs quickly

Does an eCommerce business need a shipping aggregator?

Over the past 10 years, logistics has developed rapidly. Shipping aggregators are, therefore, new courier terminology, but they are deriving from a number of processes. You can obtain a mailbox of courier partners from logistics aggregators. Meanwhile, some aggregators, such as NimbusPost, offer warehouse and distribution services.

With the help of a shipping and aggregators, your business can achieve the goal of fulfilling orders at the highest level. Additionally, shipping courier services enable businesses to focus on their current NDR. As a result, you won’t have to deal with Return of Origin (RTO) losses.

There are many advantages to using an aggregator!

The advantages of logistics aggregators are well understood now that you know how they benefit your business. There are various ways in which Indian shipping companies can help resolve your underlying shipment problems.

  • The reach of a shipping aggregator platform is wide even if your existing courier company doesn’t deliver to remote areas. By using a shipping aggregator, you can grow your business or reach remote areas at low prices.
  • Choose between an unlimited selection of integrated couriers on the shipping aggregator’s platform. To match courier partners, the interface filters the search according to specific needs. Additionally, it shows results based on delivery and pickup locations.
  • Marketplaces and websites can be integrated with shipping aggregator APIs. Your site is registered with the API platform and orders are synced directly.
  • Redirecting or reprocessing return orders through an aggregator platform is how you handle return orders. If your pin code is not accessible, your product delivery will be unsuccessful.
  • With logistics aggregators, you have access to a multifunctional platform that manages the return and forward processes at one location. Aside from that, you can process orders instantly without any assistance.
  • Shipping aggregators offer a variety of payment methods, including prepaid and cash on delivery. You can work with courier aggregators to ensure your business is successful and to collect multiple payments.
  • There is no no-cost setup platform for most logistics aggregators who have warehouses and storage facilities. You pay for only shipping charges in this manner, and shoppers’ e-commerce experience is improved.
  • The fulfilment services offered by some aggregators include inventory management capabilities. Bulk orders can be located and managed instantly there.

Platforms for shipping aggregation with more features!

  • An aggregator platform analyzes your search and suggests logistics partners that meet your needs. Furthermore, the platform analysis includes performance metrics such as delivery performance, pickup location, and COD remittance.
  • Consolidating COD remittances from local courier partners can be difficult, as it is difficult to maintain finances and customer orders. Shipping aggregators, on the other hand, generally highlight weekly or monthly COD remittances which make managing finances and improving sales easier.
  • Several Indian shipping aggregator platforms are powered by artificial intelligence and are data-backed. Your business decisions will be more informed and your customers will be happier.
  • Managing and balancing your orders, sales, revenues, and profits is key to your business’ success. You can make better business decisions with the help of shipping aggregators, who give you detailed shipment analytics.
  • Using Courier Aggregators’ automated NDR reporting, you can reduce processing time for undelivered orders. Consequently, you can save 10%* or more when ordering RTOs. This (T&C) applies.

An aggregator for shipping is required?

In the upcoming decades, there is no hint of a decline in the shipping service industry. Thus, working with a courier aggregator is a wise decision. It is possible to ship across 27000 pin codes across India through NimbusPost, which offers sophisticated connections to leading courier partners. With an aggregator assisting you, you can now reach out to the remotest areas.

Where the assessee has duly explained the source of income of the parties from whom unsecured loans are taken, the primary onus of the assessee is discharged ; if no further inquiry is undertaken , no addition can be made under section 68 of the I. T. Act, 1961

Tithi Shah
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Where the assessee has duly explained the source of income of the parties from whom unsecured loans are taken, the primary onus of the assessee is discharged ; if no further inquiry is undertaken , no addition can be made under section 68 of the I. T. Act, 1961

Mrs. Nirmalaben C. Soni , vs ACIT [ITA No.3173/ AHD/2014]

Facts of the case
The assessee is engaged in the business of resale and job work of Gold and Silver Jewellery. The assessee, filed her return of income for A.Y. 2010-11 showing total income of Rs. 77,77,266/- through Electronic Media on 31.03.2011. Upon perusal of the Balance Sheet it revealed that unsecured loan amounting to Rs. 4,29,000/- was found to be taken by the assessee from three parties.

Assessee’s Contention

The ld. Counsel for the assessee contended that the loan which was taken from one of the parties was having a regular rental income details whereof have also been placed before the tribunal. The same was also evident from the order of the Learned CIT(A) before us. Similarly, in respect of the amount so taken as loan from remaining two parties, the genuineness of such transactions was also been supported by documents being Bank Statements of the concerned banks through which such amount has been paid to the assessee. It was further contended that one of the parties is running sugar factory and earning more than 4 lacs per annum, which is also evident from the Bank Statement of the Sugar factory submitted by him and thus his credit worthiness was established . The copy of the bank statement duly signed in support of the unsecured loan to the tune of rupees one lakh received by the assessee from another party was also submitted before the authorities below, thereby establishing the genuineness.

Crux of the case

In order to establish the genuineness of the transaction the assessee has supplied the relevant details of the concerned persons to the assessing officer and thus discharged her primary onus and further no inquiry was found in order to come to a conclusion before making addition in the hands of the assessee has been conducted by the learned AO. It is relevant to mention that all transactions were routed through banking channels and the assessee duly explained source of income of those creditors. The additions, therefore, cannot be made under section 68 of the act without due process of law.

Tribunal ruled in favour of the assessee.

Download full judgment at : https://www.itatorders.in/appeal/ita-3173-ahd-2014-14-mrs-nirmalaben-c-soni-surat-the-acit-circle-6-surat

All you need to know about the Incubators selected under the Startup India Seed Fund Scheme

Tithi Shah
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All you need to know about the Incubators selected under the Startup India Seed Fund Scheme

Every startup while filling the application for the Startup India Seed Fund Scheme (SISFS) is required to select 3 incubators along with the preferences and hence the following details about the incubators along with their website links shall help the Startups to choose the incubators wisely. The following is the list of Incubators which are already selected under the Startup India Scheme by the Central Government.

S.NoName of IncubatorAbout the IncubatorWebsite link
1.IIMK LiveIndian Institute of Management Kozhikode (IIMK) is the fifth IIM set up by Government of India and is committed to research and education in management domain to meet national human resources development goals. Over the last two decades, the institute has made significant intellectual, economic and social impact at national and local level. IIMK LIVE is the business incubator and entrepreneurship development center hosted by IIM Kozhikode and is set up with the support of the Department of Science and Technology, Government of India. Established in June 2016, the center is envisioned to function as a business incubator with a purpose of creating a National Centre of Excellence that promotes innovation, new business venturing and entrepreneurship. Towards this, it seeks to emerge as a collaborative platform that helps transform innovative ideas into business ventures that make significant economic and social impact. Incubation of startup enterprises, thus, is the primary activity of IIMK LIVE. Apart from Incubation Program for Start-ups, it seeks to carry out activities that promote entrepreneurship on IIMK campus and across greater community, conduct training and research in the domain of entrepreneurship, foster innovation through competitive events, extend pre-incubation support to shape ideas, conduct accelerator/ cohort-based programs to help scale up the ventures and other assistance to entrepreneurs. Being an on-campus Incubator, it gains immensely from the faculty members, research & knowledge base, students, alumni, institutional networks and other resources of IIM Kozhikode. IIMK LIVE’s incubation program aims at supporting entrepreneurs in the process of launching their business ventures and turning them into successful business enterprises.
https://www.iimklive.org/
2.FiiRE – Forum For Innovation Incubation Research And EntrepreneurshipForum for Innovation Incubation Research and Entrepreneurship (FiiRE) is a NIDHI -Technology Business Incubator supported by DST, Government of India, hosted at the Don Bosco College of Engineering Fatorda, Goa. FiiRE supports early stage technology ventures which work towards innovation, development or improvement of products or processes or services with a scalable business model. It offers incubation support, co-working space, testing laboratory, training halls and other facilities to its incubatees and entrepreneurs. FiiRE through its structured incubation process, helps start-ups build prototypes, provides access to strategic mentors, early adopters and investors. FiiRE demonstrates how a consistent and well-curated facility fosters entrepreneurship.
https://www.fiire.org.in/
3.Gujarat Foundation For Entrepreneurial ExcellenceiCreate (International Centre for Entrepreneurship and Technology) is an autonomous centre of excellence of the Government of Gujarat and is India’s leading institution for transforming startups based on tech innovation into successful businesses. Located in a state-of-the-art 40-acre campus at Dev Dholera in Ahmedabad. To date, it has supported 389 innovations and 30 patents with a ‘high-touch, entrepreneur first model, connecting them with mentors, markets and money. Embedded systems and IoT are a focus area for iCreate, in domains like Electric Vehicles, Renewable Energy, Agritech, Healthtech, Fintech, Watertech, among others. In addition, it is home to Cisco’s largest Innovation Lab in India and has partnerships with leading institutions in the US, Israel, and other countries.
https://www.icreate.org.in/
4.Crescent Innovation & Incubation Council(CIIC)
Crescent Innovation & Incubation Council(CIIC), established as a Section-8 not for profit company is the innovation arm of B.S. Abdur Rahman Crescent Institute of Science and Technology(BSACIST), Chennai funded by BioNEST BIRAC, Department of Biotechnology, Govt. of India and positioned as the 3rd Best Bio-Incubator of India 2020 by Biospectrum Magazine. CIIC has been acting as a “One Stop Shop – Technology Business Incubator (TBI)” for startups in the field of Life Sciences, Industry 4.0 and Mobility and Transportation. CIIC aims to support & render start-up into a profitable entity through the mission statement called Triple ‘M’ – Market, Money and Mentor transforming innovation into scalable business models with high productive impact, encouraging interdisciplinary advancement both nationally and internationally. CIIC is recognized by the European Commission for collaborative projects and soft landing of startups. CIIC is administered by 10+ full time team with industry background to support startups. Atal Ranking of Institutions on Innovation Achievements (ARIIA), Ministry of Education, GoI has ranked BSACIST under Band A (6-25) through the support of CIIC. Also BSACIST has received a 5-star rating for Institutional Innovation Council, Ministry of Education, Govt of India within a year of operation.
https://www.ciic.ventures/
5.COEP’s Bhau Institute Of Innovation Entrepreneurship And Leadership

COEP’s Bhau Institute of Innovation, Entrepreneurship, and Leadership (“Bhau Institute”), hosted at the College of Engineering Pune (COEP). Since 2018, we are a Technology Business Incubator under NIDHI-TBI scheme supported by Department of Science and technology of Government of India. Bhau Institute supports early stage startups having innovative ideas in the areas of IOT, AI/ML, AR, VR, Healthcare technologies, Cyber security, and Grassroots innovations, Edutech, Agritech and Smart Mobility. Our programs include Pre-Incubation, Physical, Virtual and Custom Incubation. We provide technical and business mentoring in idea validation, financial modelling, market sizing, Go-to-Market strategy, industry connects and access to funding. We also provide access to tools, lab facilities and office space for prototype development.
https://bhau.org/
6.Coimbatore Innovation and Business IncubatorForge – a DST recognised TBI, is catalysing national-scale industrial digital transformation by enabling Government and Industry to collaborate with startups as engines of Innovation & transformation. By combining industrial innovation labs, innovation grants, startup seed capital, knowledge resources & program management capabilities, and global partner networks, Forge harnesses entrepreneurial innovation and venture capital to orbit shift India’s tech sector. Forge Advantage for Startups • Vertically integrated incubator with 75K sq.ft footprint in Coimbatore, Chennai & Hosur • Innovation CoEs & Advanced Tech Labs of Rs.40 Cr+ value • National scale market access & pathways for commercial & investments with Industrial corporates sector & Government owned public sectors • Knowledge Driven Incubation to develop capabilities of Innovators and Entrepreneurs • Grants & Seed Capital to accelerate scaling up products and ventures.
https://www.forgeforward.in/
7.Dayananda Sagar Entrepreneurship Research & Business Incubation FoundationDERBI Foundation is a Technology Business Incubator hosted by the Dayananda Sagar Institutions, Bangalore and is recognized and supported by DST and MeiTY , Government of India. Backed by multiple hospitals including the Sagar Hospitals , it has a strong focus on Healthtech and offers preincubation, incubation and acceleration programs, viz, PACE, Gallop and Emerge for early, mid and late stage startups. The startups are offered wholistic support which includes deep mentoring, access to domain experts, immersion in hospital setting, prototype development support and also access to seed funds. The portfolio startups have also been facilitated for multiple co-investments from VCs and Angel investors.
https://derbifoundation.com/
8.Centre for Advancing and Launching EnterprisesCrAdLE is a technology business incubator, promoted by Entrepreneurship Development Institute of India (EDII) and supported by NSTEDB, DST, Govt. of India. Our vision is to empower and nurture technology startups in achieving innovative, scalable and sustainable growth with the aim of positive, creative and constructive value addition to the community. We nurture an incubatee’s passion and business idea and impart a conducive support system to ensure sustainability and scalability of the startups. CrAdLE, a section 8 Company, fosters technology/knowledge-based entrepreneurial start-ups by: • Nurturing them at an early-stage and helping them overcome teething troubles, • Mentoring and providing all-equipped business environment for operation, • Extending value-added services viz. legal, financial, technical, IPR and mentoring to incubatees, • Strengthening business skills/knowledge of incubatees, • Providing a platform for speedy commercialization of technologies developed in academic and R&D institutions of the country, and • Facilitating business networking for better and faster enterprise growth.
https://cradle-edii.in/
9.Association of Lady Entrepreneurs of India (ALEAP)LEAP, an ISO 9001:2015 certified & NABET gold rank accredited, not for profit organisation, with a history of over 27 years and existing collaborations with world class organizations like World Bank, GIZ, UNDP, SBF, British Council, UNESCAPE, USIBC, etc. We are also partnered with Technology & Educational Institutes, corporates & Ministry connections. Once a year, we select a small number of startups, and work intensively, to get them into the best possible shape and refine their pitch to investors/bankers. Each cycle culminates into graduation, where the startups present to a carefully selected invite-only audience from government statutes, PE Firms, VC’s, Banks and Industry Parks to help the startups find their feet. The Incubation doesn’t end with graduation, we handhold the start-up for life and beyond through ALEAP’s WE IITC for exploring international markets and lifetime access to our D2C online e-commerce platform, ALEIZONE.
https://www.aleap.org/
10. Society for Innovation and Development (SID)

 Society for Innovation and Development (SID) was founded by IISc to create a channel to help enterprises and industries leverage science and technology. Today, SID has four main business divisions that furthers its business activities: CoRE Labs (Co-Innovation and Research with Large Enterprises) – all corporate research at IISc gets funnelled through CORE Labs. So far IISc has engaged with over 200 corporates and has executed over 400 projects STEM Cell (Science, Technology, Entrepreneurship and Money) is the incubation cell at IISc. STEM cell incubates startups that leverage deep science to create commercial enterprises. In addition, SID has two specialized Technology Business Incubators (TBI’s). CPDMed-TBI at Centre for Product Design and Manufacturing (CPDM) that focusses on incubating MedTech startups that specialize in Geriatric MedTech and InCENSE-TBI at Centre for Nano Sciences (CeNSE) which incubates startups that leverage Nano Science TIME^2 (Technology Intervention for Medium Enterprises) TIME^2 focus is on helping SME’s by infusing them with world class IP and Technology from IISc. In addition, TIME^2 offers several programs to help SME owners scout technology within IISc as well building an in-house innovation capability. SEED (Science and Engineering for Enterprise Development) The group at SEED focusses on solving specific problems that are of National importance through targeted research.
https://sid.iisc.ac.in/
11. IIMCalcutta Innovation Park

 IIM Calcutta Innovation Park (IIMCIP) was set up in 2014 under the aegis of IIM Calcutta, to promote entrepreneurship and foster innovation. Currently it is recognized as one of the best performing business incubators in India. IIMCIP is working on developing a comprehensive entrepreneurship ecosystem in the unserved or underserved regions of the country with a strong focus on social entrepreneurship. Headquartered in Kolkata, IIMCIP team works out 4 Incubation Hubs i.e. Kolkata, Guwahati (Assam), Shillong (Meghalaya) and Itanagar (Arunachal Pradesh) and currently incubating about 200 startups.
https://iimcip.org/
12. Centre for Incubation and Business Acceleration

 Centre for incubation and business acceleration (CIBA) is a Technology Business Incubator catalyzed and supported by Department of Science & Technology. As the oldest and most successful incubator in the state of Goa, CIBA assists aspiring entrepreneurs by providing them with incubation support in terms of Ideation, Prototyping and Testing Labs, MVP Development, Fund Raising, Networking, Technology Commercialization, etc. CIBA also provides various other services such as Co-working, Co-Living etc. to facilitate the growth of startup ecosystem. CIBA is committed to growing a collaborative entrepreneurial network by providing a one-stop support system for start-ups and transforming Goa as a hub for entrepreneurship & innovation.

https://www.ciba.org.in/
13. Villgro Innovations Foundation Established in 2001, Villgro incubates impact focused and innovation / invention based social enterprises in Health, Agribusiness, and Climate Action. The incubation program is designed to help enterprises create social impact at scale. Incubation comprises four aspects — seed funding, high touch portfolio management plus business advisory, structured mentoring and technical assistance program and support in building networks to markets and funders. Till date, Villgro has supported 323 social enterprises that have raised over Rs 440 Crores in funding, helped create 4922 jobs and helped impact over 20 million lives. Villgro was awarded the Best Incubator Award by the Department of Promotion of Industry and Internal Trade (GoI) in 2020.
https://villgro.org/
14. VEL TECH – TECHNOLOGY INCUBATOR

 Vel Tech Technology Incubator enables technology-embedded and innovation-powered start-ups to survive and scale across a wide spectrum of thrust areas with funding, infrastructure, mentorship, industry networking, resources, and training. Vel Tech TBI was received national recognition as NIDHI – Centre of Excellence catalyzed and Supported by NSTEDB Division, Department of Science and Technology (DST). NIDHI CoE @ Vel Tech TBI has created facility such as Manufacturing CoE, IT/ITES (Al/ML/DL – DGX – I Platform), E-Waste recycling, 3D Printing, and PCB Line of Equipment to support startups, industry units and academic research. OUR JOURNEY – 2010 established TBI to promote startups in e-waste management, Bio-waste, and Additive manufacturing facility. 2015 DST – Seed Support System (SSS) to provide financial support to Incubatees. 2017 NIDHI CoE recognition to Establish Manufacturing CoE, PCB facility, 3D Printing, and AI Super Computer Centre of Excellence, 2018 NIDHI PRAYAS funding (idea to Prototype grant), 2020 MeitY TIDE 2.0 funding (EiR and idea to Prototype grant to support ICT Innovations). OUR VISION: To be a World Class Incubator and Accelerator with a successful track record of incubating leading products, solutions, and services. Vel Tech TBI Ecosystem is rich in diversity with startups in terms of quality and quantity. Vel Tech TBI gives life to your ideas.
https://www.veltechtbi.com/
15. AIC-RNTU FOUNDATION

 AIC RNTU Foundation is one of the leading INCUBATION centres of Central India, which is supported by Atal Innovation Mission, NITI Aayog. By playing the role of both startup incubator and accelerator, we aim to train and mentor entrepreneurs to fuel their inner drive to take their products/services to the next level and create next-generation solutions; also focus on promoting entrepreneurship amongst students and in the local ecosystem via various partnerships, events and activities building a more vibrant ecosystem, whilst connecting with various stakeholders of the startup ecosystem. We are working to support the Start-up ecosystem across all the functions viz. mentoring, handholding, industry connect, workshops, investor connect, events, competitions, new age labs & dedicated office space.
https://www.aicrntu.com/
16. IIM Kashipur Foundation for Innovation and Entrepreneurship Development

 IIM Kashipur Foundation for Innovation & Entrepreneurship Development (FIED), the incubation center of IIM Kashipur, is a section 8 company with an aim to nurture and strengthen the entrepreneurship ecosystem in the state of Uttarakhand and beyond. The company is owned and hosted at IIM Kashipur with an area of 20,000 sq feet. FIED is all set to incubate the most promising start-ups of India in the domains of Tourism and Hospitality, Agriculture, Art and Craft, Technology, and Education. FIED runs projects from the Ministry of Agriculture and Farmers’ Welfare, Department of Science and Technology, and works as a nodal agency for Startup Uttarakhand. Apart from these, FIED runs standalone EDPs and works in tandem with the State Govt. of Uttarakhand to promote innovation and entrepreneurship.
https://www.fied.in/
17. Healthcare Technology Innovation Centre

 Healthcare Technology Innovation Centre, a multi-disciplinary R&D and incubation centre strategically situated at IITM Research Park, it is a joint initiative of IIT Madras(IITM) and Department of Biotechnology (DBT). The incubator is a BIONEST incubator supported by BIRAC. With HTIC’s strong industry partnerships, multi-centre clinical partners, and international research and technology collaboration, combined with the technology translation engine of HTIC, it is on the path to become a national asset and a globally recognized centre for affordable healthcare technologies in the next few years.
https://www.hticiitm.org/
18. AIC-MIT ADT Incubator Forum

 AIC-MIT ADT Incubator Forum (AIC-MITADT) is an umbrella organization hosted by MIT Art, Design & Technology University, Pune (MIT ADTU) to promote Innovation and Entrepreneurship. AIC-MITADT is a non-profit section-8 company supported by Atal Innovation Mission (AIM), NITI Aayog, Govt. of India. It leverages the power of various schools at the University to support potential founders by building a ‘Learning Culture’. It aims to build a community that nurtures the IDEA (Innovation, Design Thinking, Entrepreneurship, Arts) among the Next Generation of Entrepreneurs. VISION: To be a globally respected incubator that provides world class ecosystem to promote Entrepreneurship and Innovation. MISSION: To create a learning environment where each start-up can leverage the network effect and create society relevant products or services.
https://aic.mituniversity.edu.in/

RSA Consultants is a team of Chartered Accountants and other Professionals, rendering services in the field of Income Tax, GST, Indirect Tax, International Taxation, Corporate Law Advisory, Accounts & Assurances and Consultancy related to Startup & Entrepreneurship since 2011.

Our team can help your Startup to make application under the SISFS. Kindly get in touch with us via WhatsApp at 9723400220

CBDT Announces Extension of Due Dates for various e-filing forms

Vishvas Nandwani
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CBDT Announces Extension of Due Dates for various e-filing forms

A big relief to the taxpayers has been provided by the finance ministry to the taxpayers by extending the due dates. It was much needed as the new portal has a lot of glitches since its launch and Infosys has failed to correct the glitches. Even after 2.5 months since its launch glitches have continued to exist. Thus this move was inevitable.

The due dates have been extended for the below forms:

  • The application for registration or intimation or approval under Section 10(23C), 12A, 35(1)(ii)/(iia)/(iii) or 80G of the Act in Form No. 10A required to be filed on or before 30th June, 2021, as extended to 31st August, 2021 vide Circular No. 12 of 2021 dated 25.06.2021, may be filed on or before 31st March, 2022;
  • The application for registration or approval under Section 10(23C), 12A or 80G of the Act in Form No.10AB, for which the last date for filing falls on or before 28th February, 2022 may be filed on or before 31st March, 2022;
  • The Equalization Levy Statement in Form No.1 for the Financial Year 2020- 21, which was required to be filed on or before 30th June, 2021, as extended to 31st August, 2021 vide Circular No. 15 of 2021 dated 03.08.2021, may be filed on or before 31st December, 2021;
  • Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th June, 2021, required to be furnished on or before 15th July, 2021 under Rule 37BB of the Rules, as extended to 31st August, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be furnished on or before 30th November, 2021;
  • The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th September, 2021, required to be furnished on or before 15th October, 2021 under Rule 37BB of the Rules, may be furnished on or before 31st December, 2021;
  • Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th June, 2021, which was originally required to be uploaded on or before 15th July, 2021, and subsequently by 31st August, 2021, as per Circular No.12 of 2021 dated 25.06.2021, may be uploaded on or before 30th November, 2021;
  • Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th September, 2021, which is required to be uploaded on or before 15th October, 2021, may be uploaded on or before 31st December, 2021;
  • Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30th June, 2021, required to be made on or before 31st July, 2021 as per Circular No.15 of 2020 dated 22.07.2020, as extended to 30th September, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be made on or before 30th November, 2021;
  • Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30th September, 2021, required to be made on or before 31st October, 2021 as per Circular No.15 of 2020 dated 22.07.2020, may be made on or before 31st December, 2021;
  • Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 30th June, 2021, required to be made on or before 31st July, 2021 under Rule 2DB of the Rules, as extended to 30th September, 2021 vide Circular No. 15 of 2021 dated 03.08.2021, may be made on or before 30th November, 2021;
  • Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 30th September, 2021, required to be made on or before 31st October, 2021 under Rule 2DB of the Rules, may be made on or before 31st December, 2021;
  • Intimation by a constituent entity, resident in India, of an international group, the parent entity of which is not resident in India, for the purposes of sub-section (1) of section 286 of the Act, in Form No.3CEAC, required to be made on or before 30th November, 2021 under Rule 10DB of the Rules, may be made on or before 31st December, 2021;
  • Report by a parent entity or an alternate reporting entity or any other constituent entity, resident in India, for the purposes of sub-section (2) or sub-section (4) of section 286 of the Act, in Form No. 3CEAD, required to be furnished on or before 30th November, 2021 under Rule 10DB of the Rules, may be furnished on or before 31st December, 2021;
  • Intimation on behalf of an international group for the purposes of the proviso to sub-section (4) of section 286 of the Act in Form No. 3CEAE, required to be made on or before 30th November, 2021 under Rule 10DB of the Rules, may be made on or before 31st December, 2021.
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