Startups: Accredited investors may get exemption from angel tax - ET Retail
29 April 2019 5:06 AM GMT
This provision is considered by the government as part of an exercise to define 'accredited investors' with a view to increase investment flow in star..
- New Delhi: Funds received by startups from accredited investors may be exempted from angel tax subject to complying with certain net worth criteria, an official said.
- There should be a linkage between investments and investors' net worth and certain income should be there," the official added.
- These accredited investors, which can include trusts, individuals, family member of a startup and unlisted companies, may get exemption from angel tax under Section 56(2)(viib) of Income Tax Act, 1961, beyond the Rs 25 crore limit.
- It is dubbed as angel tax due to its impact on investments made by angel investors in startup ventures.