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Home / News / Govt set to give some relief to startups on angel tax

Govt set to give some relief to startups on angel tax

Latest Govt. Jobs 00:55:00 News Edit
Govt set to give some relief to startups on angel tax
New Delhi: It looks like the angel tax issue is finally being laid to rest to the satisfaction of startups. Ramesh Abhishek, secretary in the department of industrial policy & promotion (DIPP), said on Wednesday that if the value of a startup is assessed to be higher (when it receives a funding round) than its assumed fair value, the difference would not be considered as income.


“The notification will be out in the next two weeks. We were in consultation with various angel investors where we realised a lot of things,” said Abhishek, addressing a gathering of angel investors and startups at an event organised by LetsVenture, an angel investment platform for startups.


Earlier at the same event, NITI Ayog CEO Amitabh Kant also mentioned that the government is formalising a solution so that angel investors and entrepreneurs do not have to be bothered by the angel tax issue. “The I-T (income tax) department came out with a circular which provided little relief. We are in detailed consultation and have virtually found a solution. We are formalising a few issues and will be out with a circular soon. We will ensure all of you are hand-held and angel investors are not touched in India,” Kant said.
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