Hurray! Government turns 'Angel' for Startups, know the exact impact of tax changes
20 Feb 2019 6:00 AM GMT
The effect was given by way of a two-pronged move by way of raising�the limit of angel tax exemption for startups�and also�revising the definition of such an enterprise�simultaneously.
- The effect was given by way of a two-pronged move by way of raising the limit of angel tax exemption for startups and also revising the definition of such an enterprise simultaneously.
- When an investor invests in a startup at an often early stage, usually at the seed stage, he is called as an Angel Investor.
- The startups were made leviable to tax for the premium paid (excess of price paid over fair market value) as per section 56(2) of the Income Tax Act, 1961 at over 30%.
- The higher Rs 25 crore threshold aims to cover almost all angel investments as most listed companies will now able to invest in startups without angel tax.
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