Angle Tax - Investment in start-ups from 21 countries - Provision U/s 56(2)(viib) of IT Act 1961 shall not apply in respect of Exemption from any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares - Central Government notifies class or classes of persons - 29/2023 - Income Tax

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION NO. 29/2023 New Delhi, the 24th of May, 2023 (INCOME-TAX) S.O. 2274(E) . In exercise of the powers conferred by sub-clause (ii) of the first proviso to clause (viib) of sub-section (2) of Section 56 , the Central Government hereby notifies the following class or classes of persons, for the purposes of the said clause, namely:- (i) Government and Government related investors such as central banks, sovereign wealth funds, international or multilateral organizations or agencies including entities controlled by the Government or where direct or indirect ownership of the Government is seventy-five percent or more; (ii) Banks or Entities involved in Insurance Business where such entity is subject to applicable regulations in the country where it is established or incorporated or is a resident; (iii) Any of the following entities, which is a resident of any country or specified territory listed in Annexure, and such entity is subject to applicable regulations in the country where it is established or incorporated or is a resident : (a) entities registered with Securities and Exchange Board of India as Category-I Foreign Portfolio Investors; (b) endowment funds associated with a university, hospitals or charities; (c) pension funds created or established under the law of the foreign country or specified territory; (d) Broad Based Pooled Investment Vehicle or fund where the number of investors in such vehicle or fund is more than fifty and such fund is not a hedge fund or a fund which employs diverse or complex trading strategies. ANNEXURE List of Countries Sl. No. Name of Country/ Specified Territory (1) (2) 1 Australia 2 Austria 3 Belgium 4 Canada 5 Czech Republic 6 Denmark 7 Finland 8 France 9 Germany 10 Iceland 11 Israel 12 Italy 13 Japan 14 Korea 15 New Zealand 16 Norway 17 Russia 18 Spain 19 Sweden 20 United Kingdom 21 United States [F. No. 370142/9/2023-TPL (Part-I)] AMRIT PRITOM CHETIA, Under Secy. (Tax Policy and Legislation)