541 Startups Get Angel Tax Exemption By CBDT- Good News For Start Up

The section 56 (2) (vii)(b) of the Income Tax Act 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.

With the new notification, “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, INR 25 Cr.”

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