541 start-ups got angel tax exemption so far, says industry secretary

The government has provided angel tax exemption to 541 start-ups so far, industry secretary Ramesh Abhishek tweeted on Monday. He said only 36 applications for the exemption were turned down and that too for incomplete documentation.

The angel tax is levied on start-ups that have received equity infusion in excess of their fair valuation, with the premium being paid by investors as their income. It was introduced in the 2012-13 Budget by the then finance minister Pranab Mukherjee to curb money laundering.

As of now, according to Section 56 (2) (vii)(b) of the Income Tax Act, if a privately held company issues