ForumIAS LATEST
- Ethics Redbook 3rd Edition: A Textbook That Teaches You How to Think Ethically Click Here to Read More →
- 21 Sept. | Forum Residential Coaching (FRC) for UPSC preparation Click Here to know more →
- 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 10th Oct. Click Here to Read More →
- Finance minister has announced that angel tax will not be applicable on startups that are registered with the Department for Promotion of Industry and Internal Trade(DPIIT).
- The move is likely to give a long-demanded angel tax relief to start-ups and exempt them from scrutiny.
- The government has also decided to set up a dedicated cell under Central Board of direct taxes(CBDT) for addressing the problems faced by startups.
- Angel Tax is a 30% tax that is levied on the funding received by startups from an Angel investor.However,this tax is levied when startups receive angel funding at a valuation higher than its ‘fair market value’.It is counted as income to the company and is taxed.
- Further,the angel tax which was aimed at curbing money-laundering has resulted in a large number of genuine start-ups receiving notices from the tax department.
