'Angel Tax' provisions in finance bill will not impact startups: DPIIT Secy
The 'angel tax' provision in the Finance Bill will not impact startups in India, a senior government official said on Tuesday.
Startups which are registered with the Department for Promotion of Industry and Internal Trade do not come under the purview, Anurag Jain, the secretary in the department said while speaking at the IBVCA Conclave here.
"Let me put one thing very clearly. It doesn't affect startups in the least, he said, addressing the audience at the event organized by the venture capital industry lobby grouping.
He said there is a clear provision which says that startups which are recognized by DPIIT are out of the proposal's purview, and added that the startup recognition process is also very simple where any applicant gets it automatically.
Startups were rattled because of the proposed changes in regulations in the Finance Bill through the amendments in Section 56(2) VII B of the Income Tax Act. Foreign investors are also proposed to be included in the ambit of taxation,