Startups demand more exemption from angel tax

New Delhi, Apr 25 (KNN) The startup industry has urged the Finance Ministry to either do way or at least increase the Rs 25 crore threshold limit which exempts them from the so-called angel tax.

The industry says only a small percentage of startups will be able to meet this limit, reported ET.

Inputs from various stakeholders is being gathered by the central government on this.

The government is expected to come up with a detailed clarification on angel tax in the next few days.

During a meeting last week with Finance Ministry and the Department for Promotion of Industry and Internal Trade (DPIIT) startups raised this issue, among others.

Besides this, they expressed concern at the move to bring foreign investors under the ambit of angel tax.

The industry has also sought flexibility to invest surplus funds in the money market and liquid instruments, said people aware of deliberations.  (KNN Bureau)