Rahul Gandhi's promise to scrap angel tax a little too late, says startup sector
Only last month, the current government widened the definition of a startup, making it smoother for investors to put in their money in these companies. The government also increased the age cap for startups from 7 to 10 years.
- The startup industry does not seem to be very impressed with Congress President Rahul Gandhi's promise to abolish angel tax given that a lot of work to reform it is already under progress.
- Rahul Gandhi on March 29 promised that if Congress came to power he will ensure that new ventures do not require any regulatory permissions for three years and that angel tax gets removed.
- Under the IT Act, Section 56 (2) (viib) money invested by angels in a company is treated as income from other sources.
- Category I registered with SEBI will be exempted under Section 56(2)(viib) of Income Tax Act beyond the limit of Rs 25 crores.