The Commerce and Industry Ministry has taken up with the Finance Ministry the issue of ‘angel tax’ notices being sent to start-ups, Commerce Minister Suresh Prabhu has said.
Several start-ups have raised concerns over taxation of angel funds under the Section 56 of the Income Tax Act, which provides for taxation of funds received by an entity.
“We have taken up the issue,” the Minister tweeted. He said this in response to a tweet by chairman of Manipal Global Education T.V. Mohandas Pai, who has sought “urgent” intervention by the government in the matter.