Startups have flagged their grievances regarding angel tax provision, which they considered was not friendly to them. Photo: iStockphotoNew Delhi: Giving a major relief to budding entrepreneurs, the government on Thursday allowed startups to avail tax concession only if total investment including funding from angel investors does not exceed Rs10 crore. Several startups have raised concerns to taxation of angel funds under Section 56 of the Income Tax Act, which provides for taxation of funds received by an entity. Startups also enjoy income tax benefit for three out of seven consecutive assessment years. Startups have flagged their grievances regarding angel tax provision, which they considered was not friendly to them.

Source: Mint April 12, 2018 22:07 UTC