India Tax & Regulatory
Angel Tax (Section 56(2)(viib))
A provision taxing the excess of share issue price over fair market value, in the hands of an unlisted company, as income — relevant whenever a seller's company issues fresh shares to a buyer rather than selling existing ones.
Seller Example
Promoters of a Noida D2C brand raising ₹15 Cr from a strategic buyer via fresh share issuance insist on a defensible DCF-based fair market valuation report before the round closes, protecting the company — and indirectly the promoters' residual stake — from a future angel tax reassessment that could otherwise claw back capital the business urgently needs for growth.