DPIIT Recognition
The startup must be officially recognized by the DPIIT to qualify for Angel Tax Exemption.
Registrations
Angel Tax Exemption
Facilitating Startup Investments. Tax Exemption under Section 56 of the Income Tax Act (Angel Tax). Angel Tax Exemption, governed by Section 56 of the Income Tax Act, provides relief to startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).
What is Angel Tax Exemption?
This exemption shields startups from hefty tax liabilities, particularly concerning the valuation of shares issued to investors. Angel Tax Exemption empowers startups to attract essential funding without the fear of adverse tax implications, thereby facilitating their journey towards success and sustainability.
Unlocking Growth Potential with Angel Tax Exemption
Angel Tax Exemption serves as a crucial lifeline for startups seeking investment. It prevents startups from facing punitive tax burdens on the excess valuation of shares issued to angel investors or through seed funding rounds. By offering this exemption, the government encourages investment in startups, fostering innovation, entrepreneurship, and economic growth.
Benefits of Angel Tax Exemption
Angel Tax Exemption serves as a crucial lifeline for startups seeking investment. It prevents startups from facing punitive tax burdens on the excess valuation of shares issued to angel investors or through seed funding rounds. By offering this exemption, the government encourages investment in startups, fostering innovation, entrepreneurship, and economic growth.
Key Advantages
Eligibility Criteria for Tax Exemption
Financial Threshold
The aggregate amount of paid-up share capital and share premium of the startup, after the proposed share issuance, should not exceed INR 25 Crore.
Lifeline for Funding
Prevents startups from facing punitive tax burdens on the excess valuation of shares issued to angel investors or through seed funding rounds.
Encourages Innovation
By offering this exemption, the government encourages investment in startups, fostering innovation, entrepreneurship, and economic growth.
Why AXIAFIN
Why Choose AXIAFIN for Your Angel Tax Exemption
Angel Tax Exemption empowers startups to attract essential funding without the fear of adverse tax implications, thereby facilitating their journey towards success and sustainability. Our team handles the entire application process — from DPIIT recognition to Section 56 declaration filing — so you can focus on building your business.
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The Process
How we deliver
01
DPIIT Recognition
First obtain DPIIT recognition under the Startup India program.
02
Threshold Check
Confirm paid-up capital + share premium does not exceed INR 25 Crore.
03
Declaration Filing
File the Section 56 angel-tax exemption declaration with DPIIT.
04
Approval & Compliance
Receive approval and stay compliant with conditions throughout the funding round.
Embracing the Angel Tax Exemption
Take the First Step Toward Growth and Stability with AXIAFIN