CBDT extends angel tax relief to startups facing tax demands
5 years, 4 months ago

CBDT extends angel tax relief to startups facing tax demands

Live Mint  

New Delhi: The government has exempted all registered startups that have received tax demand notices for selling shares at a premium from an anti-evasion provision in the Income Tax Act known as ‘angel tax.’ The move seeks to ensure that genuine entrepreneurs are not affected by the provision that allows the government to demand tax on share premium, treating it as income. Earlier, the Central Board of Direct Taxes had exempted registered startups from the purview of the angel tax provision except for those that have already received tax demand notices with the intent of granting them relief at the appeals stage. Mint had reported on 8 August that the apex direct tax policy making body has asked its field officers to accept without any verification, in certain cases, the claims of government-registered startups on their eligibility for exemption from angel tax. CBDT’s Saturday’s statement explained that in addition to this, the government has also decided to extend the relief to those that have received demand notices.

Tax Demand Cbdt Tax Demand  income  registered  angel  relief  demand  share  provision  received  demands  startups  tax  facing  extends  cbdt

History of this topic

Centre scraps angel tax on foreign investments
5 months, 2 weeks ago

Centre scraps angel tax on foreign investments

The Hindu  

In a major respite to India’s fledgling start-ups, Finance Minister Nirmala Sitharaman announced scrapping of the contentious angel tax on foreign investments received by such enterprises, a development that is expected to ease their funding woes. Angel tax was originally introduced in 2012 to curb possible money laundering by foreign participants, by investing in overvalued unlisted firms. “This decision is …

What is 'Angel tax' that was scrapped in Budget 2024
5 months, 2 weeks ago

What is 'Angel tax' that was scrapped in Budget 2024

India Today  

Finance Minister Nirmala Sitharman on Tuesday scrapped the angel tax in a bid to strengthen the startup ecosystem and to support innovation in the country. "Government abolishes Angel tax for all classes of investors in startups," said the finance minister, highlighting the government's commitment to supporting new businesses. Key issues with the angel tax included its impact on the valuation …

Why union government won’t withdraw angel tax in Budget 2024
5 months, 3 weeks ago

Why union government won’t withdraw angel tax in Budget 2024

New Indian Express  

NEW DELHI: Despite persistent industry demands to address the issue of angel tax, sources suggest that the government is unlikely to abolish it in the upcoming budget to be announced on July 23. “Removing Angel tax can lead to black money because some people might exploit the system by investing their undisclosed, untaxed money into startups at higher-than-actual values. Despite …

Government unlikely to do away with angel tax, say experts
6 months ago

Government unlikely to do away with angel tax, say experts

New Indian Express  

NEW DELHI: Even though the Department for Promotion of Industries and Internal Trade has recommended the finance ministry remove the angel tax, it is unlikely that the government may pay attention to such recommendations. The DPIIT Secretary in a press briefing on Thursday said his department has recommended the removal of Angel Tax to the finance ministry and that it …

Tax Benefits For Startups, Sovereign Wealth & Pension Funds Extended to March 2025
11 months, 1 week ago

Tax Benefits For Startups, Sovereign Wealth & Pension Funds Extended to March 2025

News 18  

In a respite for the startup ecosystem, the Centre on Thursday announced to extension of tax benefits for startups and investments made by sovereign wealth and pension funds to March 2025. Certain tax benefits to startups and investments made by sovereign wealth or pension funds as also tax exemption on certain incomes of some International Financial Services Centre units are …

DPPIT Recognized Start-Ups Not to Face Verification On Account Of Angel Taxation: CBDT
1 year, 2 months ago

DPPIT Recognized Start-Ups Not to Face Verification On Account Of Angel Taxation: CBDT

Live Law  

The Central Board of Direct Taxes has notified that the Department for Promotion of Industry and Internal Trade recognized start-ups will not face verification on account of angel taxation.When an unlisted company sells shares to a buyer for more than their fair market worth, angel tax, which is income tax at a rate of 30.6%, is assessed. The Central Board …

IT department notifies 'Angel Tax' rules for valuing equities in start-ups: Know all about it
1 year, 3 months ago

IT department notifies 'Angel Tax' rules for valuing equities in start-ups: Know all about it

India TV News  

The Income Tax department has notified an "Angel Tax" rule for valuing equities and compulsorily convertible preferred shares issued by startups to resident and non-resident investors. The Central Board of Direct Taxes stipulates that the valuation of Compulsorily Convertible Preference Shares can also be based on the fair market value of unquoted equity shares in accordance with the amendments to …

What is Angel Tax and why is it a concern for the Indian startup community?
1 year, 5 months ago

What is Angel Tax and why is it a concern for the Indian startup community?

Live Mint  

In recent years, India has witnessed a thriving startup ecosystem, with numerous young entrepreneurs and innovative ideas surfacing across the country. However, amidst this growth, an issue called "Angel Tax" has emerged as a significant concern for the Indian startup community. Thirdly, angel tax generates uncertainty and apprehension among angel investors and HNIs, discouraging them from investing in startups, thus …

I-T Dept To Come Up With Angel Tax Rules Addressing Start-Ups Concerns Before April 30: Report
1 year, 8 months ago

I-T Dept To Come Up With Angel Tax Rules Addressing Start-Ups Concerns Before April 30: Report

ABP News  

The Income Tax Department is expected to come out with a detailed circular addressing various concerns related to angel tax on start-ups, in the next two-to-three days, according to a report by The Hindu Business Line. The minister of state for electronics and information technology Rajeev Chandrasekhar had, earlier said that the angel tax was an "aberration" and reforms were …

CBDT notifies creation of five-member special cell for startups
5 years, 4 months ago

CBDT notifies creation of five-member special cell for startups

Live Mint  

New Delhi: The CBDT notified on Friday creation of a five-member special cell to address grievances of startups with relation to angel tax and other tax-related issues. "The cell will work towards redressal of grievances and mitigate tax-related issues in case of startup entities with respect to administration of Income-tax Act, 1961," the order, accessed by PTI, said. A CBDT …

Opinion | The decline of tax demons and the ascent of angels
5 years, 4 months ago

Opinion | The decline of tax demons and the ascent of angels

Live Mint  

On 23 August 2019, finance minister Nirmala Sitharaman, while announcing the non-applicability of Section 56 of the Income Tax Act, 1961, popularly referred to as “angel tax” on startups registered with department for promotion of industry and internal trade, reassured entrepreneurs that the government was already sensitized to the importance of the startup ecosystem and was taking all possible steps …

Cheer for the startup sector as FM relaxes angel tax rules
5 years, 4 months ago

Cheer for the startup sector as FM relaxes angel tax rules

Live Mint  

“Section 56 of the Income Tax Act shall not apply to startups registered with the commerce ministry,” Sitharaman said. Removal of angel tax will go a long way in building trust and confidence in the startups and the investors, and shows government’s resolve towards ease of doing business in India and encourage entrepreneurship.” Srikanth Iyer, chief executive and founder, HomeLane.com, …

CBDT's procedure for pending angel tax assessment cases to provide safeguard to start-ups, say experts
5 years, 4 months ago

CBDT's procedure for pending angel tax assessment cases to provide safeguard to start-ups, say experts

Firstpost  

The board has also issued a circular to provide relief to start-ups which are undergoing assessment proceedings with respect to angel tax issue New Delhi: The government’s recent decision to give relief to start-ups on the assessment of angel tax notices would provide a safeguard to them and promote their growth, according to experts. The Central Board for Direct Taxes’ …

Government extends relief to startups, simplifies the process of angel tax assessment
5 years, 4 months ago

Government extends relief to startups, simplifies the process of angel tax assessment

Op India  

In a major relief to startups, the Narendra Modi government has decided to simplify the angel-tax assessment process under which any action against startups will be taken only after approval of a supervisory officer. In such cases where scrutiny assessments of startup entities are pending, the CBDT has decided that the contention of the assessee will be summarily accepted whose …

Relief for startups: CBDT lays out procedure for pending angel tax assessment cases
5 years, 5 months ago

Relief for startups: CBDT lays out procedure for pending angel tax assessment cases

Firstpost  

New Delhi: Giving a relief to startups, the government has laid out a procedure to address pending angel tax assessments under which action would be taken only after approval of a supervisory officer. Similarly, it said the applicability of angel tax would not be pursued during the assessment proceedings and “inquiry or verification with regard to other issues in such …

CBDT tells tax officers to accept tax break claims by registered startups
5 years, 5 months ago

CBDT tells tax officers to accept tax break claims by registered startups

Live Mint  

New Delhi: The Central Board of Direct Taxes has asked its field officers to accept without any verification, in certain cases, the claims of government-registered startups on eligibility for exemption from a rigorous anti-evasion provision. As per CBDT instructions to field officers, the claims of startups regarding exemption from taxation of the premium they receive on share sale will not …

Forget about taxman, focus on business: CBDT to startups
5 years, 6 months ago

Forget about taxman, focus on business: CBDT to startups

Live Mint  

New Delhi: The country's startup community should not worry about taxmen and concentrate on their businesses as concerns related to 'angel tax' have been "sorted out", CBDT chief P.C. All "legacy issues" related to startups will be resolved through a consultative process and under the strict supervision of senior officers of the tax authority. Asked about the "administrative arrangements" that …

Budget 2019: Startups and investors can do away with ‘Angel Tax’ by filing requisite declarations
5 years, 6 months ago

Budget 2019: Startups and investors can do away with ‘Angel Tax’ by filing requisite declarations

Op India  

In a major relief for the budding entrepreneurs and investors, the finance minister Nirmala Sitharaman during her Budget 2019 speech announced exemption of scrutiny for Angel tax for Startups and investors who have filed their returns. Finance Minister N Sitharaman said, “To resolve angel tax issue, startups who file requisite declarations will not be subjected to scrutiny in valuation.” To …

Budget 2019-20: Expect status quo on angel tax for startups
5 years, 6 months ago

Budget 2019-20: Expect status quo on angel tax for startups

India TV News  

The Union Budget on July 5 was likely to maintain a status quo on angel tax for startups, sources said and added the problematic issues were taken care of in February this year. Section 56 of the Act has come to be known as angel tax as wealthy individuals or angel investors putting their capital in startups face scrutiny. To …

Budget may keep Status quo on angel tax for startups
5 years, 6 months ago

Budget may keep Status quo on angel tax for startups

The Quint  

New Delhi, June 25 The Union Budget on July 5 was likely to maintain a status quo on angel tax for startups, sources said and added the problematic issues were taken care of in February this year. Section 56 of the Act has come to be known as angel tax as wealthy individuals or angel investors putting their capital in …

Congress to give 3-year blanket pass to new ventures, abolish angel tax: Rahul Gandhi
5 years, 9 months ago

Congress to give 3-year blanket pass to new ventures, abolish angel tax: Rahul Gandhi

Hindustan Times  

Unveiling his economic agenda, Congress President Rahul Gandhi Thursday said if voted to power his party will cut red tape for businesses, exempt new enterprises from seeking any permission in first three years, make it easier to get bank loans and scrap angel tax on start-ups. Congress to give 3-year blanket pass to new ventures, abolish angel tax: Rahul Gandhi …

CBDT notifies relaxed norms for start-ups
5 years, 10 months ago

CBDT notifies relaxed norms for start-ups

Live Mint  

New Delhi: The Income Tax Department has notified the modified norms for start-ups to enable them to seek 'angel tax' exemption for investments of up to ₹25 crore. The DPIIT, under the commerce and industry ministry, on 19 February raised the investment limit for 'angel tax' exemption to ₹25 crore and extended the period of availing benefits to 10 years …

Govt may exempt DPIIT-certified startups from angel tax; likely to raise investment limit to Rs 25-40 crore
5 years, 10 months ago

Govt may exempt DPIIT-certified startups from angel tax; likely to raise investment limit to Rs 25-40 crore

Firstpost  

The consideration assumes significance as several startups have claimed to receive angel tax notices, impacting their businesses. New Delhi: The government is considering giving complete exemption to startups from angel tax once they are certified by the Commerce and Industry Ministry, a move aimed at helping budding entrepreneurs, official sources said. Giving relief to budding entrepreneurs last year, the government …

I-T Department to soon decide on startups to be exempted from angel tax; multilayer checking system in place to find eligible firms
5 years, 11 months ago

I-T Department to soon decide on startups to be exempted from angel tax; multilayer checking system in place to find eligible firms

Firstpost  

Last month, the government eased the procedure for seeking income tax exemption by startups on investments from angel funds and prescribed a 45-day deadline for a decision on such applications. New Delhi: The Income Tax Department will soon decide on the kind of startups that can be exempted from angel tax, a top official said on Thursday. Central Board of …

Govt to form working group to resolve angel tax issue of startups
5 years, 11 months ago

Govt to form working group to resolve angel tax issue of startups

Live Mint  

The government has decided to form a small working group to look into the issue of angel tax being faced by startups and come out with a workable solution in 4-5 days, a top official said Monday. CBDT member Akhilesh Ranjan, who attended the meeting said, investors, entrepreneurs and founders have raised this issue and they were explained why this …

Fiscal incentives for IT, startups
5 years, 11 months ago

Fiscal incentives for IT, startups

Deccan Chronicle  

The Budget that will be presented on February 1, 2019 will have to factor the forthcoming general elections and I therefore expect it to be populist in nature. Last year’s Rs 2,000 crore allocation for the Pradhan Mantri Jan Arogya Yojana is grossly inadequate, and needs to be raised to at least '10,000 crore in order to provide cashless health …

Angel tax issue: DIPP to hold discussions with start-ups on 4 Feb
5 years, 11 months ago

Angel tax issue: DIPP to hold discussions with start-ups on 4 Feb

Live Mint  

The Department of Industrial Policy and Promotion will hold discussions with different stakeholders, including start-ups and angel investors, on the taxation issue being faced by the budding entrepreneurs on 4 February, an official said. "A roundtable is being organised with start-ups, angel investors and other stakeholders to discuss the new measures undertaken to address the angel tax issue and understand …

Angel tax exemption for startups: DIPP invites views from stakeholders for better implementation of procedure
5 years, 11 months ago

Angel tax exemption for startups: DIPP invites views from stakeholders for better implementation of procedure

Firstpost  

On 16 January, the government eased the procedure for seeking income tax exemption by startups on investments from angel funds and prescribed a 45-day deadline for a decision on such applications. New Delhi: The Department of Industrial Policy and Promotion on Thursday sought views from stakeholders for better implementation of the recently announced procedure for startups to seek angel tax …

New “Angel Tax” Exemption Rule Does Nothing to Comfort Start-Ups
5 years, 11 months ago

New “Angel Tax” Exemption Rule Does Nothing to Comfort Start-Ups

The Quint  

Start-ups are in distress and many feel victimised mainly due to the subjectivity, cost and arbitrariness involved in the implementation of this anti-evasionary measure which treats every assessee as guilty until proven innocent. This desperate plea by 68 start-ups in a letter to Prime Minister Narendra Modi on 15 January not only illustrates the distress caused by ‘angel tax’, but …

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