Start-ups get partial exemption from angel tax
Since a start-up gets high investment because of its idea, applying Section 56(2)(viib) to recover the tax on pretext of inflated valuation would be prejudicial to the interest of the start-up. Startups to file new Form-1 and Form-2 in order to claim tax incentives.
The application in Form-1 shall be filed along with prescribed documents before CBDT to obtain a tax exemption certificate under Section 80-IAC. The Form-2 shall be filed by the start-up to claim exemption from the applicability …