Will easing of angel tax norms help the start ups in our country?Govt in the recent budget made some measures to ease up the tax norms on angel funds. Angel funds are pumped by the angel investors in new or start up business venture in a hope of start up becoming successful and giving good returns. Angel investors are generally cash rich people and many of them are interested in new businesses for social and community development, environment control measures, new technologies for disabled and subjects like that.
Earlier, a part of these funds invested by angel investors was subjected to tax scrutiny as the difference between share price offered to the investors and their fair market value was subjected to income tax. The new measures will exempt these start ups from income tax as well as scrutiny in this regard.
It is hoped that the large number of start ups started in the hope of self employment as well as providing employment to others will be benefited by it and will be free from hassles of scrutiny and checking by the tax authorities. What do you think about this step taken by our Govt? Will this help the start ups to sail ahead smoothly?