Startup accelerator Green House Ventures (GHV) today said the government needs to liberalise policies related to angel tax and capital gains for investors for further strengthening the ecosystem for budding entrepreneurs.
GHV founder Vikram Upadhyaya said that although Indian startup ecosystem has come a long way, "the policies for startups need to be liberalised further".
He said that angel tax needs to be reduced for increasing incentives for investors and encouraging angel investors.
Capital gain tax incentives should be optimised for both domestic and overseas investors as the move would not only increase domestic investments in startups but would also enhance foreign inflows, Upadhyaya said.
Start-up India was launched by Prime Minister Narendra Modi on January 16, 2016, to nurture innovation, promote budding entrepreneurs and drive economic growth and employment opportunities.
Under this, the government provides incentives to startups such as income tax benefits, easy exit options and inspector raj-free regime and capital gains tax exemption.
Upadhyaya said the definition of angel funding should be looked at in better terms to involve more investors not only from India but from overseas.
Recently, the government allowed startups to avail tax concession only if total investment including funding from angel investors does not exceed Rs 10 crore.
Further he said India and Japan holds huge opportunities to enhance cooperation in this sector.
"Consumer tech is what entrepreneurs should explore opportunities" in both the countries, he told PTI.
Entrepreneur and angel investor Upadhyaya launched GHV in 2014. The company provides funding support and mentorship to startups.
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