Crowdfunding for Individual?

Hi there, can Individual can raise fund through crowdfunding and if so is there any limit and how to show in Income tax returns? more  

Crowd funding is basically investments by many people at large in a particular project becoming convinced of its potential or purpose. Funding can be of various types depending on the entity for which funding is sought. Generally it is raised by a limited company in various instruments, other than equity, but underlying intention is to make money by selling the shares in the market when the company is listed & the investment is converted into equity. more  
If some one is interested in giving a loan it can be taken under croudfunding as loan.Even donation should be possible.But equity contribution is not possible as it is banned by SEBI more  
If I could understand you correctly, you can raise as much as you want as an individual. This needs to be shown as gift while filing IT return. However if you have to return the amount back in future, it will be a loan. more  
No Investor shall invest in a proprietorship firm. They do investment only in companies or in LLP.

If an individual raise funds it will treated as Loan because in a Proprietorship Investment is not allowed. Reason is : Only Proprietor can be a whole sole shareholder in the entity.

Regards
CS Nitin Grover
+91-9582009494
nitin.grover@cstaxindia.com more  
Post a Comment

Related Posts

    • Covid 19 job Crisis in India

      Has been captured well by this graphic attached. I want to know what are entrepreneurs doing in this circle. Are you letting some staff go or are you cutting salaries? Our small 7 store retail chai...

      By Naina Mittal
      /
    • Difference in Intent and Ground scenario for Loans for MSMEs

      Hon. FM has said that Banks will give easy and more loans to small businesses (MSMEs), so that they use the funds to tide through these difficult times and then repay the same with interest over a ...

      By Gautam Poddar
      /
    • Minimum Balance charges

      On one hand government is providing many reliefs for common man, one of them being that Banks will not charge interest / EMIs for 3 months, on the other hand Banks are charging huge amounts in cas...

      By Gautam Poddar
      /
    • Workplace Social Distancing guidelines/rules

      As issued by the Government, attached

      By Anil Mehta
      /
    • By Vishal Khanna
      /
    • No Labour Laws applicable for 3 years

      it has exempted industries in the state from ALL LABOUR LAWS for the next 3 years. Attached Notification. Big relief for industry. All states should do this Only these labour laws will a...

      By Ajay Dutta
      /
    • Starting up of MSME units - not really

      My brother has a MSME unit in Noida Phase 2. He resides in Delhi. 80% of their staff lives in Delhi. None of them are being permitted to enter Noida because of border restrictions. This is ridiculo...

      By Vishal Khanna
      /
    • Labour Crisis

      Most migrants workers are back to home town and most probably Will not come back till post Diwali or Chhath Puja. Industries are Being opened but how these industries wil operate? there...

      By Anil Mehta
      /
    • By Nikhil Jain
      /
    • Govt cuts salaries; Private sector cuts will be brutal

      Govt has frozen the dearness allowance to central government employees till July 2021 along with any kind of arrears (attached). With this even private sector will cut the salaries, no work no pay ...

      By Anil Mehta
      /
    • Startup in the right field

      2020 will vastly accelerate adoption of the following. If you are a startup, pivot to these areas or become enabler of these 1 e-commerce 2 drone delivery 3 digital contactless...

      By Rohit Jain
      /
Share
Enter your email & mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

Please select a Circle that you want people to invite to.
Invite to
(Maximum 500 email ids allowed.)