Rajeev Chandrasekhar had admitted that the angel tax was an ‘aberration’ and reforms were under consideration
The Income Tax Department is likely to make announcements to address concerns related to angel tax on start-ups, The Hindu Business Line (HBL) has reported. The government may release a detailed circular in two or three days, the report cited senior officials from the finance ministry.
He said, “Rules are likely to be notified before April 30. Our effort is to address all the concerns.”
It is important to note that angel tax refers to an income tax levied at the rate of 30.6 per cent. The tax has to be paid when an unlisted company issues shares to an investor at a price that is more than its fair market value. In the past, angel tax was only applicable to resident investors. However, Budget 2023-24 introduced provisions to extend angel tax to non-resident investors from April 1, 2024.
