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I-T notifies 'Angel Tax' rules for valuing investments in startups

The Business Guardian

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September 27, 2023

The Income Tax department has notified rules for valuation of equity and compulsorily convertible preferable shares issued by startups to resident and non-resident investors.

I-T notifies 'Angel Tax' rules for valuing investments in startups

As per the changes in Rule 11UA of I-T rules, which comes into effect from September 25, the Central Board of Direct Taxes (CBDT) provides that the valuation of compulsorily convertible preference shares (CCPS) can also be based on the fair market value of unquoted equity shares.

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