Good news for Startups - No more fear of 'Angel Tax'; know what it was and how the decision will benefit you
The new incentive will include tax exemption on investments of both past and future investments. However, to claim the tax exemption startups\investors need to apply via DIPP in a prescribed form along with required documents. After that, the Central Board of Direct Taxes (CBDT) will issue a certificate of exemption within 45 days of the application.
Angel Tax is imposed on the difference between the premium value and fair market value of shares. Pixabay