Finance What startups should do to deal with the Angel Tax shocker Updated : January 01, 2019 01:13 AM IST In recent months, several startups and angel investors have been served notices by the income tax department, demanding tax on investments. A tax officer typically sees the valuation on which angel investors put money as higher than the fair market value and thereby issues a show-cause notice to levy a tax on the said excess value. New-age entrepreneurs are trapped unknowingly and are struggling to deal with such notices, with little cash flow. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.