INVESTORS AND FUNDRAISING NEWS
Income tax exemption for angel investors, Indian government acknowledged a long-standing demand of the startup community in the country, announcing that the angel investors would receive a total exemption on the investments in the startups.
The income tax relief impacts the startups which are approved by the inter-ministerial panel, where the paid-up capital and share premium of the beneficiary company doesn’t exceed INR 10 crore after the issuing of shares.
The 3-year income tax concession is available to the startups that have been incorporated after 1st April 2016. Start-ups enjoy the income tax benefit for 3 out of 7 successive AYs (assessment years) under the Income Tax Act.