The Central Government is preparing to relieve the startup from the tax evasion of Rs 25 crore for the relief of Angel Taxes.
Last year, the government had given concession on Angel Tax to the start-up of Rs 10 crore. Industry Promotion and Internal Trade Department and Central Direct Taxes Board have recently held several meetings in connection with the issue related to Angel Tax on the startup. Sources said that the government can extend exemption limit from Angel tax up to Rs 25 crore.
CBDT Chairman Sushil Chandra recently said that he has received many suggestions regarding the tax rebate for startup. Recently, Income Tax Department received notice to pay tax to startup. Under Angel tax, 30% tax has been asked to start from startup on raising funds from market value. New entrepreneurs say that this is interrupting the investment and the investors are also pushing. In the last month, the Center directed the departments to decide within 45 days in case of tax rebate.