Commerce Ministry relaxes Angel Tax norms for startups
The move, which is to ensure availability of funds for startups, follows concerns regarding the taxation of angel investments in this sector. The Central Board of Direct Taxes will notify the changes separately.
- In a move expected to provide relief to and boost investments into startups in India, the government has decided to simplify the process for them to get exemptions under the Income Tax Act.
- The commerce and industry ministry said Tuesday that a simpler way of granting tax exemption to startups under an anti-evasion provision dealing with the issue of taxation of share premiums received in excess of the fair market value will be issued today.
- ” commerce and industry minister Suresh Prabhu said in a tweet Tuesday.
- Investments into eligible startups by non-residents, SEBI registered alternative investment funds-category I will also be exempted under Section 56(2)(viib) of the Income Tax Act beyond the Rs25 crore limit, according to Prabhu.