Indian Government proposes Tax-free investment from Accredited Investors
An official from Indian government said that funds received by startups from accredited investors may be exempted from angel tax subject to complying with certain net worth criteria.
This provision is considered by the government as part of an exercise to define 'accredited investors' with a view to increasing investment flow in startups.
The Department for Promotion of Industry and Internal Trade (DPIIT) is working on the definition, which would be submitted to the finance ministry for approval.
"Accredited or genuine investors can invest any amount but we will make some criteria for that. It should be liberal enough so that all such people can come under its purview. But it should not be over liberal and extra-stringent," the official said.
"How much a genuine investor is inv...