Startup to be listed for Angel Tax exemption

 Listed Startup get out from Angel Tax 

The Department for promotion of industry and internal Trade (DPIIT) and central board of direct Taxes (CBDT) Agreed compile a list of startups eligible for Angel Tax exemption.

...

WHAT IS ANGEL TAX      

Angel TAX Is a 30%tax that is lived on the funding received by startup from external Investor however this 30%tax is lived on when startupreceived angel funding at a valuation higher than its fair market value :-Its counted as income of the company and tax.It is introduced in section 56(2) to fight with money laundering .

CASE STUDY:-FOR starting startup company need financial amount that should not be take from bank due to bank law . bank give loan's only on your financial status and your business performance and your last  return file so most of the starting businessman get loan from outside  investor to tackle there financial need investor get highly invested on their startup and get their equity share if company get profit they get high return or if lossed then they get lossed.

GOVT RELIEF FOR STARTUP Would be eligible for angel tax exemption has been set at Rs25crore . In case where the investment exceeds Rs 25 crore or more in the previous financial year . for investment below no question should be asked .ANGEL TAX is imposed on the excess share capital raised by an unlisted firm,over and above the fair market value of its share