Review angel tax

Start-ups and investors need more than easing of norms

The new notification easing norms for exemption from the so-called angel tax under Section 56 (2) (viiib) of the Income-Tax Act with retrospective effect from April 2016 will afford some relief to many start-ups and investors. It is encouraging to see that the government has taken note of the many objections raised. The Central Board of Direct Taxes (CBDT) is mandated to evaluate and respond to each application within 45 days. This is a welcome development, though some key issues still remain. The law itself is inconsistent with the realities of start-up investing. Though some norms have been eased, the