Accredited investors in start-ups may get exemption from angel tax: Report

Accredited investors, like trusts, individuals, family member of a start-up and unlisted companies, may get exemption from angel tax.

Funds start-ups receive from "accredited investors" may be exempted from angel tax if they comply with criteria on their net worth, an official said.

The Department for Promotion of Industry and Internal Trade (DPIIT) will define who accredited investors and then submit its proposal to the finance ministry.

"Accredited or genuine investors can invest any amount but we will make some criteria for that. It should be liberal enough so that all such people can come under its purview. But it should not be over liberal and extra-stringent," the official said.

"How much a genuine investor is investing per year would depend on