India is likely to soon announce concessions to shield startups from the so-called ‘angel tax’, including relief from levies on past investments as well.
The changes will be made to conditions specified for benefits under Section 56(2)(vii)(b) of the Income Tax Act, 1961, to remove any ambiguity and allow exemption for past as well as proposed investments that do not exceed Rs 10 crore, including paid-up share capital and premiums. The need for an inter-ministerial group to approve exemptions may also be scrapped on investments up to Rs 10 crore.