? Cool Title, but what’s the news?
The tax department today exempted angel investors from income tax on their investments in start-ups with effect from April 11.
? Okay, but what does it mean?
The tax concessions are subject to certain conditions laid down by the Department of Industrial Policy and Promotion last month, which said that the share capital and share premium of the start-up should not exceed Rs 10 crore after such investments.
? Why should I care?
Normally, 300-400 startups get angel funding in an year. The notification is a welcome move for both investors and startups that are taking baby steps in the industry, and need funding to establish themselves. More startups can now actively seek interested investors for their business. Startup India is going to be an even more interesting space in the coming times!
Source: Economic Times