Govt’s angel tax fix gives VCs, angel groups edge over HNIs - ET Retail

Govt’s angel tax fix gives VCs, angel groups edge over HNIs - ET Retail
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  • The government notification on the so-called angel tax could force startups to approach venture capital funds and angel groups for investment over wealthy individuals.
  • New rules that were made formal by the notification from the Department for Promotion of Industry and Internal Trade exempt investments of up to Rs 25 crore made by Category 1of Alternative Investment Funds from the provisions of the tax , compared with Rs 10 crore earlier.
  • These people, the so called mafias, were coming together to back early-stage startups, giving traditional VCs and angel groups a run for their money.
  • ” While the government was mulling extending the same benefits given to alternative investment funds to individuals with income of over Rs 50 lakh in the previous year and net worth of more than Rs 2 crore, issues related to certification of such investors led to the section being dropped in Tuesday’s notification.


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