DPIIT registered startups do not fall under Angel Tax provision in Fin Bill: Secy

Mumbai, Feb 22 (KNN) The Secretary of Department for Promotion of Industry and Internal Trade (DPIIT) Anurag Jain clarified on Tuesday that the ‘Angel Tax’ provision in the Finance Bill will not impact startups in India.

Speaking at the Indian Venture and Alternate Capital Association (IVCA) Conclave, he said that startups which are registered with the DPIIT do not come under the purview.

"Let me put one thing very clearly. It doesn't affect startups in the least," he said, addressing the audience at the event organized by the venture capital industry lobby grouping.

He said there is a “clear provision" which says that startups which are recognized by DPIIT are out of the proposal's purview.

Angel Tax is the tax that unlisted startups are required to pay on the capital they raise through the issue of shares. 

The startup recognition process is also very simple where any applicant gets it automatically, he added.

Jain also said that there are other issues which have been raised by the venture investing community and the same have been put forth before the Department of Revenue for a review.  (KNN Bureau)