CBDT Repeals Angel Tax For Startups

File uploaded by Deepak Arora on Jun 28, 2016Last modified by Deepak Arora on Jun 28, 2016
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In a major push to the Startup India Action Plan ,the Central Board of Direct Taxes (CBDT) has recently notified that investments made by resident persons and angel investors in Startups would not be subject to fair market value evaluation . Prior to this, it may be recalled that ‘Angel Tax’ was applicable to investments made by resident investors exceeding the fair market value, and was taxed as income from other sources for the company receiving the investment.