Indian startup founders can mitigate capital gains tax by reinvesting proceeds into residential real estate under Section 54F of the Income Tax Act. The exemption applies if sale proceeds are invested in a new residential property, subject to certain conditions and a Rs 10 crore limit. Planning, reinvestment, documentation, and temporary investment are key steps. Alternatively, Section 54EE allows tax exemption by reinvesting gains (up to Rs 50 lakh) in a government fund within 6 months. Startups under the Startup India Scheme enjoy three years of tax benefits on profits but must be recognized by DPIIT. Angel tax exemptions also apply to investments exceeding fair market value.
Tax-Saving Strategies for Indian Startup Founders Exiting Businesses
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