Startups to face 200% penalty for non-compliance with govt norms on Angel Tax
The government introduces a penalty of 200% for not complying with the norms while availing the angel tax exemption. This clause is to encourage only genuine startups and aimed at deterring the misuse of angel tax exemption. It also says that startups claiming exemptions from Angel Tax cannot buy a motor vehicle and startups are not permitted to give loans, advances. Now, the bill will go to Rajya Sabha.