India: Final changes to valuation rules under “Angel Tax”
Key changes in the final rules
Key changes in the final rules
The Central Board of Direct Taxes (CBDT) finalized the changes it proposed in May 2023 to the valuation rules under the “Angel Tax.” Read TaxNewsFlash
Key changes in the final rules include:
- Extension of the price matching benefit by providing a 90-day window pre and post the issue date of shares to a venture capital fund or a venture capital company or a specified fund or notified entity
- Waiver of requirement to determine fair market value on “valuation date” if safe harbor is elected
In addition, the CBDT separately introduced the mechanism for determining the fair market value of compulsorily convertible preference shares held by residents and nonresidents.
Read a September 2023 report [PDF 388 KB] prepared by the KPMG member firm in India
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