Amendments to Angel Investor Tax - Budget 2012
Tuesday, June 19, 2012
www.ChartAcc.com - Amendments to the Finance Bill 2012 were announced providing relief to Angel Investors as follows:
- Exemption given to notified class of investors - "It has been proposed in the Finance Bill that any consideration received by a closely held company in excess of the fair market value of its shares would be taxable. Considering the concerns raised by Angel Investors who invest in start-up companies, I propose to provide an enabling provision in the Income Tax Act for exemption to a notified class of investors."
- Tax rate reduced from 20%to 10% - "Tax on capital gains earned by a non-resident or a foreign company, on sale of unlisted securities is proposed to be reduced from 20% to 10%. Such gains are to be computed before giving effect to currency fluctuations or any indexation benefits".
- Long Term Capital Gains (LTCG) exempted - With effect from 1 July2012, sale of unlisted equity shares under an offer for sale would be subject to Securities Transaction Tax of 0.2% on the value of the transaction. Accordingly, long-term capital gains on such sale would be exempt from tax.
For more details visit followings on Angel Investors:
- Angel tax, a burden on young entrepreneurs...
- Angel Investor, who is?
- How Angel Investments (AI) will be taxed?
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