This edition of ArthNivesh Newsletter highlights key financial concepts and government initiatives. It begins with Income Tax Section 54, which allows individuals and Hindu Undivided Families (HUFs) to claim tax exemptions on capital gains if the profits from selling a residential property are reinvested in a new one. However, businesses like LLPs and companies cannot avail of this benefit. Notably, from April 1, 2023, the exemption limit under Section 54 is capped at ₹10 crore.
The newsletter also emphasizes Estate Planning, which involves organizing financial matters in case of death or incapacity. It includes creating wills, establishing trusts, and handling charitable donations to reduce estate taxes. Proper estate planning ensures smooth asset distribution, debt settlement, and guardianship arrangements for minors and pets.
Additionally, it covers the Startup India Seed Fund Scheme (SISFS), which supports startups through financial assistance for proof of concept, prototype development, and market-entry. With a budget of ₹945 crore allocated by the Department for Promotion of Industry and Internal Trade (DPIIT), the initiative aims to assist approximately 3,600 entrepreneurs over the next four years. This funding helps startups access early-stage capital, paving the way for growth through angel investors, venture capitalists, or bank loans.
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