Sep 04, 2019
I-T could still tax angels to invest in startups
Startups and investors have lauded the government’s initiatives to exempt startups from the so-called ‘angel tax’, but some people in the community fear the dreaded tax may continue to haunt many of them because a few key issues remain unresolved. The Central Board of Direct Taxes (CBDT) had on August 30 issued a consolidated notification giving a comprehensive summary of the mechanism under which startups would receive exemption from Section 56(2)(viib) of the Income Tax Act. But it did not provide a fix for some outstanding issues, industry insiders said.