IT department will decide which startup to be exempted from angel tax.
The new procedure that a startup should opt for, is via applying with all documents to DPIIT.
Section 56(2) of the I-T Act for payment of tax in angel funds.
IT department will decide which startup to be exempted from angel tax.
The tax officials along with the Department for Promotion of Industry and Internal Trade (DPIIT) met startup representatives for their suggestions.
The recognised startup application will be moved to CBDT and after that will be suggested for specific eligibility.
The meeting was against several startups and rising review upon Section 56(2) of the I-T Act for payment of tax in angel funds.
In 2012, this was established as an anti-abuse measure which was termed as angel tax due to the impact on investment by angel investors in a startup journey.
The new procedure that a startup should opt for, is via applying with all documents to DPIIT.
The startup, as well as investors, have to provide their account details and return of income and Net Worth information and return of income respectively of the last three year’s.
