“Provisions for Angel Tax” for startups under Income Tax Act
Update (September 2026): Angel tax no longer applies. Section 56(2)(viib) was omitted by the Finance (No. 2) Act, 2024 with effect from AY 2025-26, and from 1 April 2026 Rule 11UA was replaced by Rule 57 of the Income-tax Rules, 2026. This article is kept for historical reference. For the current rules on valuing shares, […]