He was referring to the modifications the government has done with respect to the issues faced by the startups due to angel tax.
The Department for Promotion of Industry and Internal Trade (DPIIT) wants to ensure that startups are able to attract investment from all possible sources, said Ramesh Abhishek, secretary DPIIT on March 7.
"We have held consultations with stakeholders on who can be accredited investors. We have already included listed companies which are eligible. We would like to include unlisted companies, individuals, trusts, LLPs. So what can be the criteria for accredited investor, who will accredit them all these are under discussion right now. We would like to do this earliest," he said while speaking on the sidelines of IVCA Conclave 2019.
"The idea is that startups should be able to attract investments from all sources. Investment under Rs 25 crore is already exempted, so it is not a problem. Investments from Alternative Investment Funds (AIF) category 1, non-resident investors, listed companies with a specific net worth and turn over are also exempted. We have recommended that AIF category 2 should also be included in this. We would like to recommend that to the ministry of finance," he added.
Abhishek was referring to the modifications the government has done with respect to the issues faced by the startups due to angel tax.
Also read: Nearly 7,000 early-age startups may benefit from new angel tax norms
Earlier this week, the income tax department modified norms for startups through which they can seek exemption for investments of up to Rs 25 crore.
The norms are expected to come into effect retrospectively from February 19.
In a move that is expected to diminish the adverse impact of angel tax on the startup ecosystem to a large extent, the DPIIT widened the definition of startup on February 19, thus making it smoother for investors to put in their money in these companies.
The government has increased the age cap for startups from 7 to 10 years and revised the turnover limit for them from Rs 25 crore to Rs 100 crore and also relaxed the norms for startups seeking exemption under Section 56 (2) (viib).
