Angel investors in start-ups get I-T exemption, effective April 11

The commerce and industry ministry had on April 11 said that a start-up can seek tax concession under Section 56 of theI-T Act

The tax department on Saturday exempted angel investors from income tax (I-T) on their investments in start-ups with effect from April 11.

The tax concessions are subject to certain conditions laid down by the Department of Industrial Policy and Promotion last month, which said the share capital and share premium of the start-up should not exceed Rs 100 million after such investments.

Also, the angel investor who plans to subscribe the shares in the start-up would have to fulfil prescribed criteria and the start-up would have to procure a report from a merchant banker, specifying the fair market value of