Startup Tax · Panaji, Goa
Clear, current advice on angel tax in Goa — Section 56(2)(viib) has been abolished from FY 2025-26 for all investors, so new fund-raises are no longer caught — and expert defence of legacy angel-tax notices for earlier years, plus the share-valuation advisory that still matters.
Overview
Angel tax — the levy under Section 56(2)(viib) on share premium received above fair market value — was for years the most feared provision for startups. It has now been fully abolished with effect from FY 2025-26 by the Finance Act 2024, for all classes of investors, and is not carried into the new income-tax law. There is no longer any separate angel-tax exemption to apply for on fresh fund-raises.
But it is not entirely behind you. Fund-raises before 1 April 2025 can still attract angel-tax notices and demands for those assessment years, and you need the valuation reports and documentation to defend them. We handle legacy angel-tax assessments and notices, advise on DCF/FMV share valuation, and flag the separate Section 56(2)(x) position — closely tied to DPIIT tax benefits and funding advisory.
What's covered
Current position, legacy defence and valuation.
Get a fixed-fee quote →Explaining the FY 2025-26 abolition and what it means for you.
Defending angel-tax notices and demands for prior years.
Building and preserving DCF/FMV reports for past rounds.
Flagging the separate provision that still applies on transfers.
Structuring premiums and valuations on new raises.
Responding to AO assessments on pre-2025 fund-raises.
Our process
We confirm whether any exposure relates to old years.
We respond to notices on pre-2025 fund-raises.
We assemble valuation and round documentation.
We guide valuations on future raises.
Frequently asked questions
No, not on fresh fund-raises. Section 56(2)(viib) — angel tax — was abolished with effect from FY 2025-26 by the Finance Act 2024, for all classes of investors, domestic and foreign. Shares issued on or after 1 April 2025 are not subject to it, and the new income-tax law does not carry the provision forward.
For new fund-raises, no — since the provision is abolished, there is no separate exemption to apply for, and DPIIT-recognised startups no longer file a separate angel-tax declaration. The benefit is now automatic for everyone. We confirm your position so you do not waste effort on a defunct process.
Yes, for earlier years. Fund-raises completed before 1 April 2025 can still face angel-tax notices and demands for those assessment years, as the abolition is prospective. If you receive such a notice, we defend it using your valuation and round documentation.
The key documents are the share valuation report (typically on a DCF or NAV basis), board resolutions, the share-issue records, any Form 56/Form 2 declarations filed, and the DPIIT certificate if applicable. We assemble and present these to defend an assessment for a prior year.
No. Section 56(2)(x), which taxes the recipient on receipt of property — including shares — for inadequate consideration in certain situations, is separate and continues to apply. It is easy to confuse the two, and we advise on whether it affects your transaction.
Yes. Even without angel tax, a defensible valuation supports your pricing, protects against other provisions such as Section 56(2)(x), and is expected by investors during due diligence. We provide or review valuations for funding rounds.
Book a free consultation and share your fund-raise details or any notice received. We confirm the current position, defend legacy assessments and advise on valuation, on a transparent fee.
Related services
Book a free consultation with a qualified Chartered Accountant in Goa. We'll explain the abolition and defend any legacy angel-tax assessment — no obligation.