Accredited startup investors may get angel tax exemption
29 April 2019 4:58 AM GMT
Currently, the government allows startups to avail full angel tax concession on investments of up to Rs 25 crore.
- Funds received by startups from accredited investors may be exempted from angel tax, subject to complying with certain net worth criteria, an official said.
- The Department for Promotion of Industry and Internal Trade (DPIIT) is working on the definition, which would be submitted to the finance ministry for approval."Accredited or genuine investors can invest any amount but we will make some criteria for that.
- There should be a linkage between investments and investors' net worth and certain income should be there," the official added.
- It is dubbed as angel tax due to its impact on investments made by angel investors in startup ventures.