February 7, 2019
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Angel tax compliance: DPIIT recognition enables an approval pathway for startup share issuances with tax authority review.
The DPIIT notification sets Startup recognition criteria-incorporation-period limits (extended for biotechnology), turnover ceiling, innovation or scalable-business requirement, and exclusion of reconstructed businesses; recognis ed Startups can apply for approval of share issuances provided post-issue paid-up capital remains within limits and investors meet specified returned-income and net-worth conditions; DPIIT forwards applications to the tax authority, which may grant or decline approval within a prescribed review period; no government survey on adverse effects of the angel tax has been conducted.