Commerce and Industry Minister Suresh Prabhu has approved a notification pertaining to Clause (VII-B) of Subsection (2) of Section 56 of the Income Tax Act to give relief to Angel investors in the Start-Ups, according to highly placed sources.'Angel Tax,' a UPA era law, is a tax imposed on the difference between the premium value of shares and fair market value of shares.The ambiguity lies in the valuation of these premium shares, wherein, the tax man sees angel investor valuations higher than fair market values and hence issues show cause notices to these Start-Ups.The Central government decision came after a number of representations were made to Commerce and Industry Minister Suresh Prabhu by Start-Ups, seeking relief from the often ambiguous 'Angel Tax' demands, sources said, adding the step is expected to give a boost to the growing sector of Start-Ups.According to the new notification, a Start-Up, which is recognised by the Department of Industrial Policy and Promotion (DIPP), ..
