ANGEL TAX, AND START UPS

From the desk of Mrs. Baby Abraham . . . . . .


       

ANGEL TAX,  AND START UPS

All multinational  companies and large industries  have surplus money after loyally remitting the taxes. How do they use it ?

1.  Some like Sivaraj Nadar, Birlas, Tatas   etc start their own hospitals , schools, colleges etc . 

2. Some spend money for rural developments and empowering their own employees family by helping them to start small ventures .

3. All major industries donate to the government fund for developmental activities.

4.  All  industries help to conduct various camps to promote awareness in various fields.

5. Some individual enable others to start their own business like the person in Kerala offering just Rs. 3000=00 which facilitated them to become self sufficient in  profit making ventures. Moreover they returned the money without fault .

He in fact helped thousands to become self dependent  by issuing

Rs. 5000=00, 10,000=00 ….

6. Technically savvy people need far greater finance for their sophisticated projects . With their ingenuity and expertise they can generate jobs for 500 or thousand or more people provided the finance is available. Here the Angel fund is a boon to such start ups.  Taxation on that amount before attaining productivity is like cutting of the banana trees 3-4 months after planting . Give them tension free early years so that they can concentrate and establish their companies  in firm footing which will remit enormous amount to the exchequer . Early strangulation stunt the growth and  proper development is hard to come by. If they fail , it will indeed be tragic loss to the individual as well as to the angel fund provider. Therefore when we talk about early taxation, we have to take into consideration the importance of the money of the investor as well as the finance provider . which ultimately affect the tax collection to the country.  So the country, the government has to nurture the companies to abundant productivity . Just as we educate the children in good educational institutions which enable them to profitable high salaried jobs and thereby production level is more and more tax from salary as well as from the sale of the products .The long term vision enable us to envisage what the process is , how long it will take to fruition and tax generation .Do not snip off the budding entrepreneurs who will be giants in their fields in the future .

           The founder of Dell company was asked whether he will contribute to the government fund for welfare activities, he said he is paying the tax and he is spending more than 80 % of the rest for empowering people through their own organisations inside and outside the US. Angel fund providers are another category who empowers people in a much more wider arena. We must do everything for the start up people to forge ahead with their borrowed money since the risk involves them as well as those who entrusted them with their hard earned money . Just out of good will they are offering  !!! Do not let them fail by taxation immediately so that they can generate more tax later on . We are familiar with bank loan and the consequences .Let not he Angel fund be of the same kind .

                         **********************************************