Finance Ministry announces Angel Tax exemption for startups registered under DPIIT

Must Read

Howdy, Modi! : World media reactions on Modi-Trump’ grand Houston Event address

New Delhi, Sep 23: United States President Donald Trump and Indian Prime Minister Narendra Modi on late Sunday shared...

Howdy Modi : Modi-Trump mark history in US-India relationship with great show at Houston

Houston, Sep 22:  Modi, delivering his speech at the historic event, talks about the development underwent over five years...

ECI announces dates of Maharashtra & Haryana elections; Single Phase Election on October 21; Result on 24th

Election Commission of India has announced the dates of much-awaited state elections. According to the Chief Election Commissioner, Sunil...

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

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Three burnt to death in Jharkahnd accident

Ranchi, Sep 23 (IANS) Three people were burnt to death on Monday when a coal-laden truck fell on a...

Israeli-Arab bloc backs Netanyahu’s rival Gantz (Lead)

Jerusalem, Sep 23 (IANS) Joint List, an Israeli-Arab bloc, has backed former Army chief Benny Gantz to become the country's new Prime Minister and...

Delhi Transport Minister calls meeting on Odd-Even

New Delhi, Sep 23 (IANS) Delhi Transport Minister Kailash Gahlot on Monday called a meeting of concerned departments and stakeholders to plan the Odd-Even...

INX Media case: Indrani’s statement not credible, says PC

New Delhi, Sep 23 (IANS) Indrani Mukherjee's statements are not credibile, former Finance Minister P. Chidambaram said in a reply on the status report...

No Monday Blues: Sensex up over 1,200 points

Mumbai, Sep 23 (IANS) Bull run in the domestic stock markets continued for the second straight day as the BSE Sensex rose over 1,200...
- Advertisement -

More Articles Like This