The government on February 19, 2019 exempted start-ups from ‘angel tax’ on funds they have raised from investors in the last seven years.
The Commerce and Industry Ministry issued a notification to simplify the process for start-ups to receive tax exemptions under an anti-evasion provision of the Act.
The decision is expected to stop companies considering migration to other destinations, and boost investments into start-ups.
Investments into eligible start-ups by non-residents and venture capital companies or funds will also be exempted beyond the Rs 25 crore limit under this section of the Act.
Angel tax is applicable to unlisted companies that have raised capital ....
