With little clarity on how valuations would be conducted, the Angel tax introduced by the Finance Act of 2023 seems to be a case of putting the cart before the horse. The move seeks to impose additional taxes on companies receiving consideration from non-resident investors/shareholders, surpassing the fair market value of unlisted shares.
Please refer to the below document to read the full article by Raj Ramachandran, published in Mint.
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Raj specializes in Corporate Commercial, Banking & Finance and Cross Border Investments & Acquisitions.