Angel tax

Angel tax was income tax under Section 56(2)(viib) on the premium at which an unlisted company issued shares above fair market value. It was abolished for all classes of investors by the Finance (No. 2) Act, 2024, with effect from FY2025-26 — so a share-premium raise no longer attracts it (confirm specifics with your CA).

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General information, not tax, legal or accounting advice. Thresholds and timelines change by notification — confirm applicability with your CA, CS, or lawyer.

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