Angle Tax Exemption

Facilitating Startup Investments

Angle Tax Exemption

Tax Exemption under Section 56 of the Income Tax Act (Angel Tax)

Angel Tax Exemption, governed by Section 56 of the Income Tax Act, provides relief to startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). This exemption shields startups from hefty tax liabilities, particularly concerning the valuation of shares issued to investors.

Eligibility Criteria for Tax Exemption

DPIIT Recognition

The startup must be officially recognized by the DPIIT to qualify for Angel Tax Exemption.

Financial Threshold

The aggregate amount of paid-up share capital and share premium of the startup, after the proposed share issuance, should not exceed INR 25 Crore.

Unlocking Growth Potential with a Angle Tax Exemption

Benefits of Angel Tax Exemption

Angel Tax Exemption serves as a crucial lifeline for startups seeking investment. It prevents startups from facing punitive tax burdens on the excess valuation of shares issued to angel investors or through seed funding rounds. By offering this exemption, the government encourages investment in startups, fostering innovation, entrepreneurship, and economic growth.

Why Choose Sandeep Nalla And CO. for Your Angle Tax Exemption

Angel Tax Exemption empowers startups to attract essential funding without the fear of adverse tax implications, thereby facilitating their journey towards success and sustainability.

Embracing the Angle Tax Exemption

Take the First Step Toward Growth and Stability with Sandeep Nalla And CO

Angle Tax Exemption