Start-ups laud Finance Bill amendments, penalty on flouting angel tax norms

Penalty of 200% for not complying with the conditions laid down for availing angel tax exemption

Start-ups and experts welcomed the Centre’s move to encourage only genuine start-ups by introducing an amendment to the Finance Bill, passed by Lok Sabha on Thursday. This includes a penalty of 200 per cent for not complying with the conditions laid down for availing angel tax exemption. 

“The finance minister has assured start-ups that they would be protected from the hassles of angel tax. Earlier, only registered start-ups were given exemption from angel tax. But now, it has been extended to all start-ups submitting the prescribed forms. This is a welcome change and will be of great help to the start-ups.