India redefines “startups” to provide young companies relief from angel tax
19 Feb 2019 10:19 PM GMT
But all's not well.
- The Narendra Modi government has finally delivered on its promise to Indian startups.
- The commerce ministry yesterday (Feb. 19) notified several measures to simplify the process of exempting startups from angel tax, levied when a privately-held company raises funds at a rate higher than its “fair valuation.
- Among other things, the government shall now consider an entity as a startup for up to 10 years after its incorporation as compared to seven years earlier, provided its turnover for any one financial year has not exceeded Rs100 crore.
- In addition, now startups can apply for an exemption from angel tax if their paid-up share capital is up to Rs25 crore, compared to Rs10 crore earlier.
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