Share buyback has always been seen as a viable exit strategy by startup investors, alongside IPO, M&A and secondary sale. In fact, the mention of share buyback is often made in shareholder agreements as a potential exit option for the investor. However, from 1 October 2024, the tax rules for buybacks in India have changed in a big way, which directly impacts its viability as an exit route for startup investors. Let's break it down: How Buybacks Were Taxed Earlier (Till 30th S

Background Startup Venture D is a Kolkata-based healthtech company  operating in the digital healthcare infrastructure  space. Founded in early 2023, the company provides an integrated digital platform that enables hospitals, clinics, healthcare professionals, and patients to seamlessly access medical records, manage workflows, and automate operational processes. A key differentiator of the platform is its focus on interoperability of healthcare data  across the broader healt

This case study explores the valuation of a Bangalore-based healthtech startup undertaken to support an upcoming fundraising round. Using a structured, multi-method approach including DCF, venture capital benchmarks, and market comparables, the engagement focused on deriving a defensible valuation range reflective of growth potential, sector dynamics, and early-stage risks. The valuation served as a practical reference point for investor negotiations and strategic decision-ma

Background Startup Venture A is a Bangalore-based deeptech startup  operating in the advanced battery and electric aviation ecosystem. Founded in early 2023, the company focuses on developing lightweight, high-performance lithium-ion battery solutions  for drone and electric aviation applications. At the time of engagement, the startup was at the seed stage  and preparing to raise institutional capital to scale product development, manufacturing, and market entry. Engagement

In India, sustainability is not a foreign import - it’s a part of who we are. Our traditions and daily practices have long promoted mindful consumption and community living. Yet, in the modern business landscape, sustainability must evolve from a cultural habit to a strategic framework. This is where ESG (Environmental, Social, and Governance) comes in. For startups, ESG is not a compliance exercise, it’s a growth mindset. When young ventures embed ESG principles early, they

The wordings in clause 27(a) of the Tax Audit Form 3CD, relating to reporting of GST Input Tax Credit, has created a lot of confusion in the CA fraternity, different practitioners and corporates having different interpretations leading to doubt and sometimes a difference of opinion with clients. What's the confusion all about? Clause 27(a) of the latest Tax Audit Form 3CD officially notified by CBDT reads as follows: "27(a) Amount of Central Value Added Tax credits availed o

Startups are now being recognized almost in every Central and State laws that relate to businesses. From Companies Law to Income Tax Law, certain benefits have been carved out for startup ventures, to accommodate their unique requirements and to incentivize them in the form of financial and qualitative benefits. In this article we dive deeper into the income tax incentives given to startups under the Income Tax Act 1961, who is eligible to avail those benefits and how to avai

When starting a new startup in India, one of the first and most critical decisions founders face is choosing the right legal structure - Private Limited Company (Pvt. Ltd.) or Limited Liability Partnership (LLP). Both have their own benefits and challenges and making the right decision depends on multiple factors such as tax treatment, compliance requirements, investment-readiness, and mid & long-term vision. We often get this query from startup founders, so we compiled a

The transfer of unquoted equity shares of an Indian company between two resident individuals is a common transaction, often arising in family settlements, business restructuring, startup cap-table management, rewarding advisors and private agreements. However, such transfers carry tax implications under the Income-tax Act, 1961, particularly under sections 50CA and 56(2)(x), which should be accounted for before executing such transactions. In this article, we will consider a

Employee Stock Option Plans (ESOPs) are a powerful tool for talent retention and wealth creation. However, issuing and exercising ESOPs in India comes with specific compliance and valuation requirements under various laws, including the Companies Act, Income Tax Act, and FEMA (in case of foreign employees). This guide breaks down the valuation and filing requirements at three crucial stages - Grant, Vesting, and Exercise - to help you stay compliant. Companies Act At the time

Explore why startup valuation is crucial in India for fundraise, investor confidence, and statutory filing. Learn how DCF analysis, Venture Capital Method and Comparative Analysis guides funding decisions in pre-seed, seed, pre-revenue, and Series A rounds. Gain insights to value your startup for investment, funding, and compliance in India’s dynamic ecosystem. Relevant for startups in Bangalore, Bengaluru, Karnataka, India.

Table of Contents Economy Direct Tax Indirect Tax Significant Judgements Personal Finance Emerging Trends of AI in key sectors What’s Buzzing? Management Lesson Economy World Bank lowers India’s FY26 growth forecast to 6.3% On 23rd April, the World Bank lowered India’s growth forecast for the current fiscal by 4 percentage points to 6.3% amid global economic weakness and policy uncertainty. In its previous estimate, the World Bank had projected India’s growth at 6.7% for the

Explore why startup valuation is crucial in India for fundraise, investor confidence, and statutory filing. Learn how DCF analysis, Venture Capital Method and Comparative Analysis guides funding decisions in pre-seed, seed, pre-revenue, and Series A rounds. Gain insights to value your startup for investment, funding, and compliance in India’s dynamic ecosystem. Relevant for startups in Mumbai, Bangalore, Bengaluru, Hyderabad, Pune, Delhi, Gurgaon, Noida, Kolkata, India.