Angel taxation epitomizes exactly how unintended outcomes normally undo the best of motives. Section 56(2)(viib) of your income tax password taxation the essential difference between the trouble price out of unlisted ties as well as fair market price (FMV), and this has to be determined by a seller banker possibly having fun with guide really worth or discounted earnings means. Introduced for the 2012 since the good size to end age group and circulation away from unaccounted currency”, it emerged due to a well known governmental leader’s team receiving unaccounted display superior off ? 277 crore.
As the 2016, this part could have been aggressively misapplied to help you Indian startup’s increasing financing from investors. It actually was called angel income tax because it applied priily offices whom purchased startups. Regardless of the title, it absolutely was put on startups and not the brand new investor. The new impact are limited generally in order to early-phase startups as most of the capital within the afterwards values happens from foreign finance. An analysis of the biggest resource series away from 2021 and you can 2022 places assets by Indian fund on reduced single digits from inside the regards to capital.
