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

    • NEFT 24x7 notification

      My wife has shared the details about how her inputs were taken on making NEFT 24*7 by these circles which is commendable. Attached is the 24*7 neft notification. If your bank doesnt make...

      By Arjun Singh
      /
    • Staring at an abyss

      This article is about my Uncle M, a man whom I love and respect very deeply. He is an entrepreneur, making a precision cutting tool for the leather industry for nearly four decades now, and has alw...

      By Rohit Jain
      /
    • 200000 mid levels IT jobs to go in 12 months

      Today's ET says more than 200,000 mid level IT employees losing jobs in next one year. Already white collar jobs are not growing. Now more job losses. I would keep my expectations on economic growt...

      By Naina Mittal
      /
    • Bank loans

      Two months back some 80000 crores disbursed as loan. In October 2.52 lacs crores disbursed as loans. I am struggling to get a loan of 15 lacs for the past three months (The loan for a MSME manufact...

      By Subramanian Venkataraman
      /
    • 18% gst on CXO salaries

      Everyone please read attached. If you all agree, Let us request LocalCircles to take this up like they took up the matters of tax date extensions recently

      By Sridhar Mohan
      /
    • Economy in Decline

      Look at these numbers. What is the plan to revive things? Rather what should be the plan? -- Mining sector contracts 8.5% -- Manufacturing sector contracts 3.9% -- Electricity secto...

      By Mukul Puri
      /
    • MSME gst refunds not happening in 30 days

      On aug 23 the honble FM announced that pending msme gst refunds will get done in 30 days and going forward be settled in 60 days. The same is not happening. Can local circles please esca...

      By Vishal Khanna
      /
    • ROC return filing date extension

      By law ROC returns have to be filed within 30 days of AGM. By law AGM has to happen within 6 months of financial year closing that is March 31. Given all the festive season etc, I think ...

      By Shirisha Kumar
      /
    • People manipulating in name of startups

      Many many companies and smes are taking their old businesses and moving the business in new company after 2016 startup india. What is the Govt doing to ensure businesses of large compan...

      By Varun Bhawnani
      /
    • State of the economy

      Good insights on what could be done to address the economy but given the collection challenges of gst and direct tax how can the govt boost rural give away.

      By Sudesh Rai
      /
    • GST

      20% of tax GST tax payers account for 80% of tax . the GST filing should be simplified to a large extent. I am also a registered GST member without appreciable turn over. The gst form can not be u...

      By Subramanian Venkataraman
      /
Share To
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.)