The government is planning alternatives to attract more funds into startup ecosystem by exempting investors from tax on capital gains accrued when they exit a startup, reported The Economic Times.

To deliver this incentive, the Department for Promotion of Industry and Internal Trade (DPIIT) is likely to introduce two alternatives — one, a blanket exemption, and two, a conditional exemption based on funds redeployed, the daily said.

The development comes after the government gave investors and entrepreneurs relief from Angel tax, the report said, adding that the government now hopes that these measures will prove to be an encouragement for further investment in the startup sector.

However, DPIIT is yet to make the recommendation to the revenue department, an official was quoted as saying in the report.

First Published:Apr 25, 2019 9:57 AM IST