Angel Tax | Pixr8 News

25Aug By AnkitaNo Comments

INDIA

DPIIT Registered Startups Exempt from Angel Tax: Indian Finance Minister

The Indian government exempted all startups that are registered with the DPIIT from the so-called 'angel tax', which will help resolve difficulties faced by the fledgling businesses and their investors. "To mitigate genuine difficulties of startups and their investors, it has been decided that Section 56(2)(viib) of the IT Act shall not be applicable to a startup registered under DPIIT," Finance Minister Nirmala Sitharaman told Pixr8 News. She added that while the said section will continue to be part of the Income Tax Act, it will not be applicable to the startups registered with the Department for Promotion of Industry and Internal Trade (DPIIT). Besides, a dedicated cell, headed by a member of the Central Board for Direct Taxes (CBDT), will be set up to address concerns faced b...

To Remove Angel Tax, Indian Government Proposed Series of Steps

India Finance Minister proposed a series of steps to remove angel tax woes of start-ups and relaxation from income-tax scrutiny. In her maiden budget, the finance minister noted that start-ups in India are taking firm roots and their growth needs to be encouraged. "To resolve the so called angel tax issue, the start-ups and their investors who file requisite declaration and provide information in their returns will not be subjected to any kind of scrutiny in respect of valuations of share premiums," she said. The issue of establishing identity of investors and the source of funds will be resolved by putting in place a mechanism of e-verification, she added. "With this, funds raised by start-ups will not require any kind of scrutiny from the income tax department," the minister ...

No ‘Angel Tax’ For Startups on Raising Funds Up To Rs 10 Crore

In between the Indian government's bid to promote Make in India and the startup industry in the country, the government has finally agreed stating that startups founded before 2016 who have raised up to Rs 10 crore angel funding will be exempted from the Angel Tax. Know what is Angel Tax here? "We have finalised the conditions which will resolve the issue of pre-2016 startups," an anonymous official from DIPP(Department of Industrial Policy and Promotion) told the source ET. The finance ministry had initiated the discussions with the Department of Industrial Policy and Promotion (DIPP) on the certification of genuine startups to help with the decision, amidst growing protests from investors and startup founders. "The government has also asked tax officials not to pursue cases against s...