News Post

No angel tax scrutiny for DPIIT-recognised startups: Govt

News 18

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Startups registered with DPIIT (Department for Promotion of Industry and Internal Trade) will not be subjected to assessment proceedings for angel tax amendments introduced in Budget 2023. The Budget widened the scope of angel tax to include foreign investments, but exemptions were provided for startups registered with DPIIT. In a circular, the CBDT (Central Board of Direct Taxes) stated that if a DPIIT-recognised startup is chosen for scrutiny regarding angel tax, the assessing officer will not verify the case and the startup's contention will be accepted. This provides much-needed clarity on the applicability of angel tax on registered startups.

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