Mar 13, 2023
Clear rules on angel tax next month
The finance ministry will come out with the guidelines on the proposed angel tax next month to clarify how the tax will be levied and will also provide valuation guidelines. However, there will be no rethink on the Budget proposal to make the levy applicable to non-residents as well.
“Genuine startups registered with the department for promotion of industry and internal trade (DPIIT) will not be impacted. Valuation rules on how the investment will be calculated will also be issued. The objective is not to hurt genuine businesses but only ensure that those people who are trying to evade taxes come under the tax net,” said a person familiar with the development.