Start-ups registered with the Department of Industrial Policy and Promotion of the Government of India are exempted from the payment of the "Angel Tax" with conditions. This tax refers to
1. Tax payable on capital raised by new listed start-up companies via issuance of shares where the share price is seen in excess of fair market value of shares sold.
2. The tax that start-up were supposed to pay if they receive a loan at a discounted rate of interest because of higher success ratio.
3. Tax payable on capital raised by unlisted companies via issuance of shares where the share price is seen in excess of fair market value of shares sold.
4. The tax that start-ups were supposed to pay when their annual income would cross the specified threshold as per their fair market valuation.