Budget 2012 disappointed not just corporate India but also young start-ups. The Finance Minister proposed that the government will treat all individual investments which include genuine angel money in a company as income from other source. They will now be subject to a tax of 30%.
The tax man can now levy a tax of the amount of invested is in excess of the face value. But the problem is that the fair market value has to be substantiated to the satisfaction of the assessing officer, leaving it open to the tax manDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
