Led by the Confederation of Indian Industry (CII), industry stakeholders have called for the removal of Angel Tax due to its negative impact on startups.
About Angel Tax:
- Introduced in 2012 under the Income-tax Act 1961, Angel Tax is levied on unlisted companies issuing shares to an investor at a price above their fair market value.
- This tax mechanism aims to prevent money laundering and ensure compliance with the tax system among startups during their early stages.
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