Preferred nations lose exemption: Angel tax impact
Our Partner, Armaan Patkar, expresses his views in the Financial Express on angel tax and how this may incentivize investors in Singapore and Mauritius to consider CCDs as an alternative investment route.
Armaan mentioned that “Investors in these countries and investee companies may be forced to adjust valuations to avoid tax, despite having legitimate reasons for a valuation premium. This may incentivize such investors to explore CCD structures, particularly for investors in Singapore and Mauritius that would receive relief from capital gains tax under DTAAs. However, the risk that angel tax would apply when converting the CCDs looms large. As such, the proposed changes to tax valuation guidelines are eagerly awaited, as it may help companies bridge these valuation gaps.”
7A, 7th Floor, Tower C, Max House,
Okhla Industrial Area, Phase 3,
New Delhi – 110020
The rules of the Bar Council of India do not permit advocates to solicit work or advertise in any manner. This website has been created only for informational purposes and is not intended to constitute solicitation, invitation, advertisement or inducement of any sort whatsoever from us or any of our members to solicit any work in any manner. By clicking on 'Agree' below, you acknowledge and confirm the following:
a) there has been no solicitation, invitation, advertisement or inducement of any sort whatsoever from us or any of our members to solicit any work through this website;
b) you are desirous of obtaining further information about us on your own accord and for your use;
c) no information or material provided on this website is to be construed as a legal opinion and use of this website will not create any lawyer-client relationship;
d) while reasonable care has been taken in ensuring the accuracy of the contents of the website, Argus Partners shall not be responsible for the results of any actions taken on the basis of information provided in this website or for any error or omission in the website; and
e) in cases where the user has any legal issues, the user must seek independent legal advice.