Page 23 - It Act News Today

CBDT outlines the proposed changes in Rule 11UA or valuation rules, also lists out entities proposed to be exempted from the angel tax ambit

The Finance Act, 2023, had amended Section 56(2)(viib) of the I-T Act, bringing overseas investment in unlisted closely held companies, except DPIIT- recognised startups, under the angel tax net.

In the past, the angel tax was only applicable to resident investors. However, Budget 2023–24 introduced provisions to extend the angel tax to non-resident investors as of April 1, 2024.

CBDT also listed out entities proposed to be exempted from the angel tax ambit.

The Income Tax Department on Friday proposed to exempt Sebi-registered FPIs, pension funds and SWFs from the purview of angel tax.

The Income Tax department is expected to soon come out with certain draft rules to specify the class of investors and norms of valuation of foreign investment in unlisted companies.

Amid the ongoing row over angel tax, DPIIT has reportedly broached the taxation issue of Indian startups with the finance ministry.

The plea contended that blocking the applications places unreasonable restrictions on the exercise of freedom of speech and freedom to carry out trade and business, as guaranteed under the Constitution of India.

Get latest articles and stories on Latest News at LatestLY. The Department for Promotion of Industry and Internal Trade (DPIIT) has taken up the taxation issue of startups with the finance ministry, a top government official has said. Latest News | DPIIT Takes Up Startup Taxation Issue with FinMin: Secretary.

Observing that there is "no indication" in the case diary that the FIR is politically motivated and based on some false and concocted story, the Gauhati High Court dismissed Indian Youth Congress...