Angel Tax, the demon that haunts startups
The Morning Brief
00:00
The Impact of the Angel Tax on Startups
The government proposed to tax any investment into an unlisted company if it was made at a higher valuation than the fair market value. Akhilesh Ranjan, who is formerly a member of the Central Board for Direct Taxes or CBDT, says the provision was necessary to prevent money laundering. Nikonj Bobna, a Mumbai based entrepreneur had to face this Angel Tax demon a few years ago which eventually led to the shutting down of his startup.
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