India issued draft guidelines Friday to ease considerations over an “angel tax” on international buyers launched not too long ago by India’s Finance Minister Nirmala Sitharaman as an modification to the earnings tax legislation.

Under the tax, if an unlisted firm points shares to a resident investor at a worth larger than the truthful market worth of the shares, the surplus quantity is taxable as earnings within the palms of the issuer. Sitharaman earlier this yr included non-resident buyers beneath the ambit of this provision.

“This is a positive,” Ajay Rotti, founder and CEO of Tax Compaas, mentioned of Friday’s draft rules, …