The latest notification means any investments from these countries (excluded countries) will attract angel tax. Saurrav Sood- Practice Leader-International Tax and Transfer pricing at SW India says this seems to be a deliberate miss in spite of the fact that many investments come from these jurisdictions through SPVs (special purpose vehicles), which invest indirectly into Indian start-ups.
Sood also said such a condition of 50 investors is somewhat misaligned with Section 9A provisions which provide safe harbour benefits with 25 investors as a condition there in. “While this notification has been a welcome relief to investors, it will have to be seen whether it meets the end fairly or is a goal half achieved,” he added.
