To identify the requirements and category of investors relevant to the value of a foreign investment in unlisted enterprises, the Income Tax Department will release draft regulations within the next eight to ten days. According to a representative of the Income Tax Department, tight controls on foreign investment in unlisted companies can be implemented under the Finance Bill, 2023, revisions.
Income tax department
Only startups approved by the Department for Promotion of Industry and Internal Trade (DPIIT) are exempt from taxation under Section 56(2)(7B) of the Income Tax Act. The draft of the guidelines is anticipated to arrive in the next eight to 10 days, the official stated. The stakeholders have already been consulted informally on this.
Income tax department
He stated that the department will announce the final regulations on the “Angel Tax” after gathering input from the stakeholders on the draft rules. The fair market value (FMV) of shares of unlisted companies will be determined according to the draft guidelines so that foreign investment can be taxed.
Overseas investors
However, there have also been attempts to exclude some from it. Certain categories of foreign investors have to be excluded, according to startups and the venture capital sector. In the meantime, there will be no taxes levied on foreign investment in startups recognized by DPIIT.
Read More: This nation is constructing the first electric road in the world!Â
| |
  YouTube |          Click Here |
| Â Facebook Page | Â Â Â Â Â Â Â Â Â Click Here |
| Â Instagram | Â Â Â Â Â Â Â Â Â Click Here |
|  Telegram Channel |          Click Here |
