INCOME TAX · STARTUPS AND GROWING BUSINESSES
Angel Tax Has Ended: What Startup Founders Still Need to Check
Understand the abolition of the old share-premium tax and why investor evidence, valuation and earlier-year disputes still matter.
By Vyapar Setu Online | Startups and growing businesses · 28 October 2026
Business Income Tax series · Startups and growing businesses · Article 18 of 27
A startup raises funding at a valuation based on its future potential. Under the old angel-tax rule, a mismatch with the prescribed tax valuation could create tax for the company. That specific rule has been switched off—but fundraising records still matter.
Read the year first: Reviewed 28 October 2026. Tax Year 2026–27 uses the Income-tax Act, 2025 and Rules, 2026. Returns for FY 2025–26 / AY 2026–27 use the earlier framework. This guide identifies relevant old section names and current changes; apply each limit to its stated period.
Keep reading, for free
Sign in with Google to read the full article.
Your name, email and sign-in dates are saved privately for reader account management. Privacy details
For learning and preparation. Verify the rules and official guidance for your period and circumstances before making a filing or tax decision.
Explore common questions →THE DISCUSSION
Questions & comments
Ask about this guide or share a useful experience. Comments are published immediately and may be removed by the owner if needed. Please leave out PAN, Aadhaar, bank details and other private information.
Sign in to comment. Your Google display name will be public with approved comments; your email will not. Privacy & comments
Loading comments…