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Nov 27, 2023
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Angel Tax: How to determine the value of unlisted equity shares and convertible preference shares?
On the 25th September 2023, the Central Board of Direct Taxes (CBDT) released Notification No. 81/2023, which brings amendments to Rule 11UA. This rule outlines the procedures for evaluating investments made by both resident and non-resident investors in closely held companies (e.g., start-ups). This valuation process plays a crucial role in deciding whether Angel Tax will be applicable to these start-ups. Prior to this release, the board had issued a preliminary draft of the rule and sought feedback and comments from stakeholders and the general public.
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