The Finance Ministry on Tuesday notified final valuation rules for foreign and domestic investors into shares of unlisted companies – such as start-ups – under the new angel tax mechanism proposed in the Finance Act 2023.
The rules have accounted for the industry’s calls by addressing an additional sub-clause of compulsorily convertible preference shares (CCPS). In a draft of the rules released in May, the ministry had left out CCPS which are used extensively to inject capital into startups.
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