Angel Tax Exemption (Section 56(2)(viib))

This scheme is closed: Section 56(2)(viib) removed by the Finance (No. 2) Act 2024, effective AY 2025-26 (1 Apr 2025). Confirmed via law-firm and tax commentary, not the gazette text; older disputes can still be live. Check the official page for any reopening.

Last checked 11 Oct 2026 against the official scheme page. Terms and dates can change, so confirm on the official site before you apply.

Angel tax on share premium above fair market value has been abolished for share issuances from 1 April 2025, so DPIIT exemption is no longer needed. Startup India recognition page still mentions the exemption.

Eligibility Criteria

Previously DPIIT-recognised startups could seek exemption; the provision no longer applies to issues from FY 2025-26 for any company.

Similar Schemes

FoF 2.0

Startup India Fund of Funds 2.0

Corpus Rs 10,000 crore, routed through AIFs

CGSS

Credit Guarantee Scheme for Startups

Guarantee cover up to Rs 20 crore per borrower (85% of default for loans up to Rs 10 crore, 75% above)

80-IAC

Section 80-IAC Income Tax Holiday for Startups

100% deduction on business profits for 3 consecutive financial years

Apply on the official government portal

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Quick Facts

Governing Body: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry / Central Board of Direct Taxes
Ministry / Dept: DPIIT
Level: Central Government
Status: Check official site