Angel Tax Exposure Calculator
Check your startup's Section 56(2)(viib) liability instantly — with live exemption analysis. No sign-up.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Get your valuation reviewed by a CA
We review your Rule 11UA report and structure the round to minimise angel-tax risk.
Disclaimer: Informational only — not tax advice. FMV must be certified by a CA / SEBI-registered merchant banker under Rule 11UA. Rates per Finance Act 2024.
Questions people ask
Short answers on Angel Tax Calculator. Tap a question to open it.
01What is angel tax in India?
Angel tax refers to tax levied under Section 56(2)(viib) of the Income Tax Act on the premium received by a startup from investors over the fair market value of shares. It is treated as income from other sources and taxed at applicable slab rates.
02Has angel tax been abolished?
Yes. The Union Budget 2024 abolished angel tax for all classes of investors including foreign investors with effect from 1 April 2025 (AY 2025-26 onwards). Section 56(2)(viib) no longer applies to share premium received after this date.
03Which startups were previously exempt from angel tax?
DPIIT-recognised startups with a certificate of eligible business were exempt from angel tax subject to conditions including a cumulative investment cap. The exemption required filing Form 2 and approval from the Inter-Ministerial Board in certain cases.
04How was fair market value determined for angel tax purposes?
Fair market value was calculated using the Discounted Cash Flow (DCF) method or the Net Asset Value (NAV) method as per Rule 11UA of the Income Tax Rules. Startups could use a merchant banker's valuation certificate.
05Can angel tax assessments made in prior years be reopened?
Yes. If an assessment was completed for AY 2024-25 or earlier, the department can still reopen it within the limitation period. The abolition is prospective and does not automatically cancel pending or completed assessments for earlier years.
More Startup & Funding tools
Picked from the same shelf. Every tool is free and runs in your browser.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.