mumbai the angel tax provision in the finance bill will not impact startups in india a senior government official said on tuesdaystartups which are registered with the department for promotion of industry and internal trade do not come under the purview anurag jain the secretary in the department said while speaking at the indian venture and alternate capital association ivca conclave herelet me put one thing very clearly it doesnt affect startups in the least he said addressing the audience at the event organized by the venture capital industry lobby groupinghe said there is a clear provision which says that startups which are recognized by dpiit are out of the proposals purview and added that the startup recognition process is also very simple where any applicant gets it automaticallystartups were rattled because of the proposed changes in regulations in the finance bill through the amendments in section 562 vii b of the income tax actforeign investors are also proposed to be included in the ambit of taxation wherein a startup raising funding from a foreign investor will also be liable to pay income tax if the funds are received above the face value of shareswithout specifying jain said there are other issues which have been raised by the venture investing community and the same have been put forth before the department of revenue for a reviewhe said we need to look at how to mobilize domestic capital further into the startups and newage companiesthere have already been changes on this front including allowing longterm pension and insurance funds to invest in alternative investment fundshe said by 2047 india will be a developed country and a realistic estimate pegs the size of the economy to be usd 30 trillion which can be the second biggest in the worldgrowth will be driven by knowledge sustainability and innovation he said adding that startups provide right solutions across all threein 2022 adverse geopolitical events followed by macroeconomic headwinds resulted in a fall in the funding for indian startups jain said stressing that the country is relatively better placed when compared with others