Last week, the Central Board of Direct Taxes (CBDT) issued a notification, removing the ill-conceived ‘angel tax’ that was imposed on start-ups more than four years ago. The notification, dated 14 June, amends Section 56(2) (viib) of the Income Tax Act whereby capital raised by start-ups from domestic angel investors will not be taxed as income even if the investment exceeds the fair market value of the start-up’s shares. Earlier, such investments were taxed at the rate of more than 30% as income from other sources.
Start your deal-making journey now!
Subscribe now to enjoy unlimited access at just $59.
Premium coverage on private equity, venture capital, and startups in Asia.
Exclusive scoops from our reporters in nine key markets.
In-depth interviews with industry leaders shaping the ecosystem.
Already a Subscriber? Log in
Contact us for corporate subscriptions at subs@dealstreetasia.com
