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
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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
Jul 31
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
Jul 31
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
Jul 31
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
Jul 30
