Startups to be exempted from ‘angel tax’ for funds raised in last seven years, says Centre
Union minister Suresh Prabhu said an entity will be considered a startup up to a period of 10 years from the date of incorporation, instead of seven years.
- Union Minister of Commerce and Industry Suresh Prabhu on Tuesday announced that startups will now be exempted from “angel tax” on funds raised from investors in the last seven years.
- Angel tax is the tax payable on capital raised by unlisted companies via issue of shares.
- The minister also said that an entity will be considered a startup up to a period of 10 years from the date of incorporation and registration, instead of seven years as earlier.