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Section 56(2)(viib) update-
start up recognised by DIPP to be eligible for exemption from the section provided:
- Agreegate amount of paid up share capital including premium does not exceed Rs 10 crores
- Investor has minimum returned income of Rs 50 Lakh or more in previous FY (preceding investment)
- Net worth of such investor exceeds Rs 2 cr or equivalent to the amount of investment to be made in the startup, whichever is higher (as on last day of FY)
- Benefits: CBDT to issue certificate within 45 days | no requirement for FMV certification from merchant banker | PE Funds and venture capitalists have welcomed the move
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