The government has notified changes to Section 56 of the Income Tax Act, in a move that brings relief to start-up founders and investors dealing with the issue of "Angel Tax". In a notification, the government today said that all DIPP-recognised start-ups can apply to the department for approvals requesting exemption from Angel Tax, or Section 56 2 (viib) of the Income Tax Act, which will then be sent to the Central Board of Direct Taxes (CBDT) for approval.
