DPIIT assures start-ups on solving angel tax issue

New Delhi, Feb 5 (KNN) The government will work on introducing new regulations to save fledgling startups from the burden of Angel Tax as quickly as the next five days, said Ramesh Abhishek , Secretary, the Department for Promotion of Industry and Internal Trade (DPIIT)

He said this following his meeting here with over 50 entrepreneurs, start-ups and investors who voiced their concerns on angel tax.

"We have got a number of suggestions, so we will form a smaller working group and will try to come out with suggestions and solutions in the next 4-5 days," the secretary told reporters after the meeting.

A report by Local Circles and Indian Private Equity and Venture Capital Association showed that 73 per cent of start-ups, which have raised capital, have received one or more tax notices since their inception.

Central Board of Direct Taxation (CBDT) and DPIIT said that they would consider raising the tax break limit for them to paid-up capital and share premium of Rs 25 crore — up from current Rs 10 crore.