Finance Ministry announces Angel Tax exemption for startups registered under DPIIT

Must Read

Sanju Samson to replace Shikhar Dhawan in T20 series against WI

Sanju Samson will replace injured Indian opener Shikhar Dhawan in the T20s series against West Indies starting from next...

Supreme Court lashes out on Centre & Delhi govts for Rising Pollution

The Apex Court of the Country, the Supreme Court on Monday lashed the Central and State Government for their...

Harbhajan Singh wishes BCCI Prez Sourav Ganguly to change Selection Panel

The Indian off-spinner Harbhajan Singh on Monday urged Sourav Ganguly, President of BCCI (The Board of Control for Cricket...

Finance Minister Nirmala Sitharaman, said that the Income Tax Act 1961 would not applicable to the startups registered under DPIIT (Department for Promotion of Industry and Internal Trade).

The minister further added that the government will set up a dedicated cell under a member of CBDT (Central Board of Direct Taxes) for addressing problems of startups. Any startup with any income tax issues can approach the cell for quick resolution, she said.

The Income Tax Act 1961 comes under section 56 (2) (vii) (b), which says that if a privately held company issues its shares at a price more than its fair market value, the amount received in excess of the fair market value will be taxed as income from other sources.

Earlier, the DPIIT and CBDT issued a notification, regarding the similar issue, and said, “All the startups are allowed to receive angel tax exemption regardless of their share premium values given that the aggregate amount of paid-up share capital and share premium of the startup after issue or proposed issue of shares, if any, does not exceed, ₹25 crore.”

Whereas, minister of commerce and industry Piyush Goyal, recently, in the parliament, said that the Central Board of Direct Taxes has exempted 702 startups under Section 56 (2) (vii) of Income Tax Act, 1961 till June 21.

Hence, with the latest announcement by the FM, the government has further solved issues pertaining to angel tax as the startups don’t need to depend on qualifications but get a blanket exemption from the Section 56 (2) (viib) if they are a DPIIT-registered startup.

Also read: Startups with turnover of up to ₹25 cr will continue to get tax holiday: CBDT


Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Some rare images of 13th President of India – Pranab Mukherjee

Wishes pouring in as former President of India, Pranab Mukherjee, turned 84 today. Mukherjee was indeed a leader, who...

Automaker Nissan announces price hike by up to 5 percent from January

The revised increased price will impact all available models for Nissan and Datsun, effective January 2020

Sony announces the launch date of Predator: Hunting Ground

Sony announced the new Predator: Hunting Grounds game during their State of play presentation. The game is going to release on April 24, 2020....

Ayushmann Khurrana to star in Hindi remake of Tamil film ‘Ratsasan’: Report

Ayushmann Khurrana, who is currently riding high on the success of his last film Bala, is likely to star in Hindi remake of a...

RTE admission in Gujarat private schools will now require Rent agreements

After Chandigarh Parents' Association (CPA) filed a case against six private schools on asking Rent Agreement from parents of EWS (Economically Weaker Sections) students....
- Advertisement -

More Articles Like This