Angel Tax Exemption — Premium justified. Exposure closed.
Advisory and application support on the exemption from tax on share premium for eligible startups, including valuation support and representation where an assessment has already been raised.
Book Free ConsultationThe exposure commonly called angel tax arises where a company issues shares at a price above their fair value: the excess can be brought to tax as income of the company. For an early-stage business raising on prospects rather than assets, that is exactly the position it finds itself in.
N D Savla & Associates advises startups in Nashik and across Maharashtra on the exemption available to eligible recognised entities, on the declarations and conditions it carries, and on defending a premium where the exemption is not available.
The valuation file is what decides the outcome. A premium supported by a properly prepared valuation with defensible assumptions is far easier to sustain than one justified after the fact by reference to what an investor was willing to pay.
Our Angel Tax Exemption Services
Exposure Assessment
Assessment of the share premium exposure on issuances already made or planned.
Eligibility Review
Review of eligibility for the exemption available to recognised startups.
Declaration Filing
Preparation and filing of the declaration and supporting particulars.
Valuation Support
Support on the valuation basis, assumptions and documentation of the premium.
Condition Compliance
Advice on the continuing conditions attached to the exemption.
Round Structuring
Input on structuring a round so that the exposure is managed at issuance.
Assessment Representation
Representation where an addition has been proposed in an assessment.
Documentation File
Assembly of the file supporting the premium for future examination.
Our Process
Issuance Review
Past and proposed share issuances and their pricing are reviewed.
Eligibility & Route
Eligibility for the exemption is tested and the route decided.
Valuation File
The valuation basis is documented with assumptions recorded.
Declaration
The declaration and supporting particulars are prepared and filed.
Defence
Where questioned, the position is defended in assessment proceedings.
Why It Matters
Frequently Asked Questions
Raising above book value?
Send us the round terms and the valuation — we'll assess the exposure before the shares are issued.
