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Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Step 1 – Issue Identification & Review
The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI
• Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions
• Judicial precedents and Supreme Court, High Court and other citations
• Issue-wise legal analysis
• Practical arguments and supporting content
• Professionally structured draft ready for further review. 
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The Ministry of Corporate Affairs vide notification GSR 704 (E) dated 19.07.2016 has amended Companies (Share Capital and Debentures) Rules, 2014 to allow a startup company as defined in notification GSR number 100 (E) dated 17.02.2016 issued by Department of Industrial Policy and Promotion, to issue sweat equity shares not exceeding fifty per cent of its paid up capital upto five years from the date of its incorporation or registration.
This was stated by Shri Arjun Ram Meghwal, Minister of State for Corporate Affairs in written reply to a question in Lok Sabha today.
Sweat equity issuance by startups permitted under amended rules with capped share percentage and limited post-incorporation period. Amendment permits sweat equity issuance by companies qualifying as startups under the government notification, allowing a startup to issue sweat equity shares up to a prescribed proportion of its paid-up capital within a limited period from incorporation or registration, linking eligibility to the startup definition and conditioning issuance on both a capital ceiling and a post-incorporation timeframe.Press 'Enter' after typing page number.