angel tax budget

India may accept the valuation criterion followed under the foreign exchange management law for the so-called angel tax on investments by overseas investors in startups, to provide clarity and end tax disputes.The Reserve Bank of India (RBI) administered Foreign Exchange Management Act (FEMA) accepts valuation by a Sebi-registered Category 1 merchant banker using any internationally accepted pricing methodology applied on an arm’s length basis.Tax authorities are considering adopting the same, among other options, for…

In a big relief to Indian startups, the centre is likely to defer the Angel tax on non-residents to April 1, 2024. The Centre is learnt to have proposed amendments to the Finance Bill, which will likely be passed in the parliament today.In the union budget 2023, the government had proposed to amend the angel tax provision or the section 56(2) (viib) of the income tax act in the budget through finance bill.Also read | ETtech Explainer: Has the Budget 2023-24 resurrected 'angel tax'?The provision states that any premium…