New angel tax exemption notified

0
1382
tax exemption
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

The Department for Promotion of Industry and Internal Trade (DPIIT), on 19 February 2019, notified revised conditions to claim exemption from tax under section 56(2)(viib) of the Income-tax Act, 1961 (ITA).

Section 56(2)(viib) of the ITA levies a tax (angel tax) on share premium received by private companies for the issue of shares at a price higher than the fair market value of the shares, as computed for tax purposes.

As per the 19 February notification, the exemption from angel tax will be available to a startup: (a) which has been recognized by the DPIIT; (b) whose aggregate paid-up share capital and share premium after issue or proposed issue (excluding investment by non-residents, venture capital companies and venture capital funds, and specified companies) does not exceed ₹250 million (US$3.5 million); and (c) which has not invested in any specified assets (such as a building or land used for purposes other than its business or for renting or held as a stock in trade, loans and advances other than those extended in the ordinary course of business, capital contribution to any other entity, shares and securities etc.).

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bengaluru, Singapore, Silicon Valley, Munich and New York. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.

 

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link