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Section 56(2)(viib) update-
start up recognised by DIPP to be eligible for exemption from the section provided:

  1. Agreegate amount of paid up share capital including premium does not exceed Rs 10 crores
  2. Investor has minimum returned income of Rs 50 Lakh or more in previous FY (preceding investment)
  3. 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)
  4. 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