Relaxation in norms for start-ups to unshackle angel investing: industry
19 Feb 2019 7:35 AM GMT
The government's move to relax norms for start-ups will "unshackle angel investing" and unleash the next wave of entrepreneurship in the country, helping India further strengthen its position as a leading "start'up nation", according to industry
- Giving major relief to budding entrepreneurs, the government Tuesday relaxed the definition of start-ups, and allowed them to avail of full angel tax concession on investments worth up to Rs 25 crore.
- Previously, a start-up was allowed to avail tax concession only if total investment, including funding from angel investors, did not exceed Rs 10 crore.
- Various start-ups had raised concerns on notices sent to them under Section 56(2)(viib) of the Income Tax Act, 1961, to pay taxes on angel funds received by them.
- It is dubbed as angel tax due to its impact on investments made by angel investors in start-up ventures.
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