Delhi Court Freezes $136M Tax Demand Against OYO
- redlionscapital
- Jul 20
- 1 min read
The Delhi High Court has temporarily blocked a ₹1,140 crore (≈$136 million) tax bill issued to OYO. The tax authorities claimed that in 2020–21, OYO raised money at a valuation higher than fair market value—triggering India’s controversial “angel tax” rule, which treats such excess as income.
OYO argued the funding came from its parent company and wasn’t taxable income. The court agreed to pause collection of the amount and ordered tax officials to review the case properly.
Our view: This is a major relief for OYO ahead of its potential IPO. It also signals that Indian courts may be more cautious in applying legacy “angel tax” rules that many startups have called unfair.
Source: economictimes.com
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