Angle Tax - Investment in start-ups from 21 countries - Provision U/s 56(2)(viib) of IT Act 1961 shall not apply in respect of Exemption from any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares - Central Government notifies class or classes of persons - 29/2023 - Income Tax

New Notification Exempts Select Foreign Investors from 'Angle Tax' on Start-Up Investments u/s 56(2)(viib.

The Central Government has issued Notification No. 29/2023, dated May 24, 2023, under the Income Tax Act, 1961, exempting certain entities from the 'Angle Tax' provision under Section 56(2)(viib). This exemption applies to investments in start-ups from 21 specified countries. The exempted entities include government and government-related investors, banks, insurance entities, and specific investment vehicles like Category-I Foreign Portfolio Investors, endowment funds, pension funds, and broad-based pooled investment vehicles. These entities must be regulated in their respective countries, which include Australia, Austria, Belgium, Canada, and others listed in the annexure.