Rahul Gandhi vows to end angel tax on startup investments if Congress is voted to power in 2019
5 years, 9 months ago

Rahul Gandhi vows to end angel tax on startup investments if Congress is voted to power in 2019

ABP News  

Rahul Gandhi said that if Congress is voted to power, it will do away with the angel tax Rahul Gandhi also said that the current form of the is ruining the informal sector Bengaluru: Congress President Rahul Gandhi on Monday said that if his party is voted to power in the Lok Sabha elections, it will do away with the angel tax levied on investments in startups, terming it a 'counter' to the philosophy of startups. Angel tax is levied on the premium paid on investments in startups and unlisted firms to curb "laundering" under the Income Tax Act, 1961, as their valuations increase despite stagnant or declining revenues. Currently, startups are levied around 30 per cent Angel Tax on the investments made by overseas investors. Gandhi also told entrepreneurs the current form of the GST, implemented by the Narendra Modi-led government, was a "disaster".

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History of this topic

From startup founders to athletes: How India’s angel investor landscape is evolving beyond wealthy individuals
6 days, 22 hours ago

From startup founders to athletes: How India’s angel investor landscape is evolving beyond wealthy individuals

Live Mint  

Sport stars, actors and young professionals are edging their way into angel investment territory as big-name founders in India’s startup ecosystem go easy on funding. The top three angel investors of 2023 reduced their investments in 2024, reflecting a pullback in angel funding to Indian startups. Muted sentiment While Gupta and Thapar remained in the top three most active angel …

Abolition of angel tax 'phenomenal move' in boosting startup ecosystem, says TiE Silicon Valley
5 months, 2 weeks ago

Abolition of angel tax 'phenomenal move' in boosting startup ecosystem, says TiE Silicon Valley

New Indian Express  

WASHINGTON: Welcoming the abolition of angel tax by Union Finance Minister Nirmala Sitharaman in her annual budget presentations, a top Silicon Valley entrepreneur and venture capitalist on Wednesday described it as a phenomenal move that will increase the activity of angel investing in the India-US corridor. She always seems to be so in tune with what is important for the …

Budget 2024: Abolition of angel tax will improve startup ecosystem, foster innovation in Odisha
5 months, 2 weeks ago

Budget 2024: Abolition of angel tax will improve startup ecosystem, foster innovation in Odisha

New Indian Express  

BHUBANESWAR: The startups have much to cheer about the announcements made by Union Finance minister Nirmala Sitharaman on Tuesday. Addressing a long-standing demand, she introduced significant reforms, including abolition of angel tax for all investors, to support small businesses and foster innovation. “The abolition of the angel tax for all classes of startup investors could be a game-changer for the …

Startup founders in Hyderabad eye innovation, relief as budget abolishes angel tax
5 months, 2 weeks ago

Startup founders in Hyderabad eye innovation, relief as budget abolishes angel tax

New Indian Express  

HYDERABAD: Startup founders and employees in Hyderabad welcomed the abolition of angel tax by the Centre in the Union Budget on Tuesday, terming the decision a game changer. A 30% angel tax was being levied on investments received by startups from external investors, on the amount going beyond the fair market value of a company. If a firm’s fair value …

Centre scraps angel tax on foreign investments
5 months, 2 weeks ago

Centre scraps angel tax on foreign investments

The Hindu  

In a major respite to India’s fledgling start-ups, Finance Minister Nirmala Sitharaman announced scrapping of the contentious angel tax on foreign investments received by such enterprises, a development that is expected to ease their funding woes. Angel tax was originally introduced in 2012 to curb possible money laundering by foreign participants, by investing in overvalued unlisted firms. “This decision is …

Budget 2024: Centre abolishes 'Angel tax' | What it means and how it impacts startups?
5 months, 2 weeks ago

Budget 2024: Centre abolishes 'Angel tax' | What it means and how it impacts startups?

India TV News  

Budget 2024: In a major step, the Union Budget 2024 presented by Finance Minister Nirmala Sitharaman on Tuesday officially abolished the "Angel tax" for all classes of investors for the financial year 2024-25. "First of all, to bolster the Indian startup eco-system, boost the entrepreneurial spirit and support innovation, I propose to abolish the so-called angel tax for all classes …

What is 'Angel tax' that was scrapped in Budget 2024
5 months, 2 weeks ago

What is 'Angel tax' that was scrapped in Budget 2024

India Today  

Finance Minister Nirmala Sitharman on Tuesday scrapped the angel tax in a bid to strengthen the startup ecosystem and to support innovation in the country. "Government abolishes Angel tax for all classes of investors in startups," said the finance minister, highlighting the government's commitment to supporting new businesses. Key issues with the angel tax included its impact on the valuation …

Why union government won’t withdraw angel tax in Budget 2024
5 months, 3 weeks ago

Why union government won’t withdraw angel tax in Budget 2024

New Indian Express  

NEW DELHI: Despite persistent industry demands to address the issue of angel tax, sources suggest that the government is unlikely to abolish it in the upcoming budget to be announced on July 23. “Removing Angel tax can lead to black money because some people might exploit the system by investing their undisclosed, untaxed money into startups at higher-than-actual values. Despite …

Budget 2024: Venture capitalists call for angel tax removal to boost startups
5 months, 3 weeks ago

Budget 2024: Venture capitalists call for angel tax removal to boost startups

India Today  

As the Monsoon Session of Parliament approaches, scheduled from July 22 to August 12, all eyes are on the Union Budget 2024 presentation slated for July 23. Venture capitalists and industry experts are rallying behind a crucial demand which is the removal of angel tax to further promote a more conducive environment for startups in India. "Removal of Angel Tax …

Government unlikely to do away with angel tax, say experts
6 months ago

Government unlikely to do away with angel tax, say experts

New Indian Express  

NEW DELHI: Even though the Department for Promotion of Industries and Internal Trade has recommended the finance ministry remove the angel tax, it is unlikely that the government may pay attention to such recommendations. The DPIIT Secretary in a press briefing on Thursday said his department has recommended the removal of Angel Tax to the finance ministry and that it …

Tax Benefits For Startups, Sovereign Wealth & Pension Funds Extended to March 2025
11 months, 1 week ago

Tax Benefits For Startups, Sovereign Wealth & Pension Funds Extended to March 2025

News 18  

In a respite for the startup ecosystem, the Centre on Thursday announced to extension of tax benefits for startups and investments made by sovereign wealth and pension funds to March 2025. Certain tax benefits to startups and investments made by sovereign wealth or pension funds as also tax exemption on certain incomes of some International Financial Services Centre units are …

IT department notifies 'Angel Tax' rules for valuing equities in start-ups: Know all about it
1 year, 3 months ago

IT department notifies 'Angel Tax' rules for valuing equities in start-ups: Know all about it

India TV News  

The Income Tax department has notified an "Angel Tax" rule for valuing equities and compulsorily convertible preferred shares issued by startups to resident and non-resident investors. The Central Board of Direct Taxes stipulates that the valuation of Compulsorily Convertible Preference Shares can also be based on the fair market value of unquoted equity shares in accordance with the amendments to …

What is Angel Tax and why is it a concern for the Indian startup community?
1 year, 5 months ago

What is Angel Tax and why is it a concern for the Indian startup community?

Live Mint  

In recent years, India has witnessed a thriving startup ecosystem, with numerous young entrepreneurs and innovative ideas surfacing across the country. However, amidst this growth, an issue called "Angel Tax" has emerged as a significant concern for the Indian startup community. Thirdly, angel tax generates uncertainty and apprehension among angel investors and HNIs, discouraging them from investing in startups, thus …

'Angel Tax' Provisions In Finance Bill Will Not Impact Startups: DPIIT Secy
1 year, 10 months ago

'Angel Tax' Provisions In Finance Bill Will Not Impact Startups: DPIIT Secy

ABP News  

The 'angel tax' provision in the Finance Bill will not impact startups in India, a senior government official said on Tuesday. It doesn't affect startups in the least,” he said, addressing the audience at the event organized by the venture capital industry lobby grouping. Startups were rattled because of the proposed changes in regulations in the Finance Bill through the …

What Is Angel Tax? How It Is Going To Impact Indian Start-Ups. Read Here
1 year, 10 months ago

What Is Angel Tax? How It Is Going To Impact Indian Start-Ups. Read Here

ABP News  

The Indian economy is an eminent illustration of the fact that taxes and tariffs are the main sources of income for governments worldwide. The Angel Tax bill may impact the paradigm of foreign investments into domestic start-ups as potential investors may shift their investments to other international avenues because foreign investors expect a favourable rebate on taxes on the capital …

Angel tax may trim foreign funding in Indian startups
1 year, 11 months ago

Angel tax may trim foreign funding in Indian startups

Live Mint  

Indian startups raising capital from foreign investors such as SoftBank, Sequoia Capital, Prosus, Tiger Global, KKR and Blackstone will now have to pay angel tax in a move that could squeeze funding into the sector facing a liquidity crunch and prompt more startups to shift overseas. “This could compel more startups to flip overseas, as foreign investors may not want …

Opinion | The decline of tax demons and the ascent of angels
5 years, 4 months ago

Opinion | The decline of tax demons and the ascent of angels

Live Mint  

On 23 August 2019, finance minister Nirmala Sitharaman, while announcing the non-applicability of Section 56 of the Income Tax Act, 1961, popularly referred to as “angel tax” on startups registered with department for promotion of industry and internal trade, reassured entrepreneurs that the government was already sensitized to the importance of the startup ecosystem and was taking all possible steps …

Cheer for the startup sector as FM relaxes angel tax rules
5 years, 4 months ago

Cheer for the startup sector as FM relaxes angel tax rules

Live Mint  

“Section 56 of the Income Tax Act shall not apply to startups registered with the commerce ministry,” Sitharaman said. Removal of angel tax will go a long way in building trust and confidence in the startups and the investors, and shows government’s resolve towards ease of doing business in India and encourage entrepreneurship.” Srikanth Iyer, chief executive and founder, HomeLane.com, …

Startup India vs angel tax: Union Budget 2019-20 has offered some sops to startups, but will bureaucracy play spoilsport?
5 years, 4 months ago

Startup India vs angel tax: Union Budget 2019-20 has offered some sops to startups, but will bureaucracy play spoilsport?

Firstpost  

It’s a Battle Royale out there. However, pitted against Startup India is a formidable opponent, popularly known as Angel Tax. And till this is done, do the startups happily keep paying angel tax? The government had also said that angels who invest through certain funds, would not be subject to angel tax, since the AIF was a government-approved fund anyway. …

Relief for startups: CBDT lays out procedure for pending angel tax assessment cases
5 years, 5 months ago

Relief for startups: CBDT lays out procedure for pending angel tax assessment cases

Firstpost  

New Delhi: Giving a relief to startups, the government has laid out a procedure to address pending angel tax assessments under which action would be taken only after approval of a supervisory officer. Similarly, it said the applicability of angel tax would not be pursued during the assessment proceedings and “inquiry or verification with regard to other issues in such …

Budget 2019: Startups and investors can do away with ‘Angel Tax’ by filing requisite declarations
5 years, 6 months ago

Budget 2019: Startups and investors can do away with ‘Angel Tax’ by filing requisite declarations

Op India  

In a major relief for the budding entrepreneurs and investors, the finance minister Nirmala Sitharaman during her Budget 2019 speech announced exemption of scrutiny for Angel tax for Startups and investors who have filed their returns. Finance Minister N Sitharaman said, “To resolve angel tax issue, startups who file requisite declarations will not be subjected to scrutiny in valuation.” To …

Union Budget 2019-20: Startups want angel tax to be abolished, corporate tax to be reduced, make capital more accessible
5 years, 6 months ago

Union Budget 2019-20: Startups want angel tax to be abolished, corporate tax to be reduced, make capital more accessible

Firstpost  

In the Narendra Modi government 2.0’s first Union Budget, startups have a slew of expectations. Although last year’s Union Budget was a setback to India’s promising Hospitality and Tourism industry, this year we are expecting more attention on this sector, favorable policies, fund allotments for startups and better tax reforms. Gautam Raj Anand, Founder and CEO, Hubhopper, podcasting and AOD …

Budget 2019-20: Expect status quo on angel tax for startups
5 years, 6 months ago

Budget 2019-20: Expect status quo on angel tax for startups

India TV News  

The Union Budget on July 5 was likely to maintain a status quo on angel tax for startups, sources said and added the problematic issues were taken care of in February this year. Section 56 of the Act has come to be known as angel tax as wealthy individuals or angel investors putting their capital in startups face scrutiny. To …

Budget may keep Status quo on angel tax for startups
5 years, 6 months ago

Budget may keep Status quo on angel tax for startups

The Quint  

New Delhi, June 25 The Union Budget on July 5 was likely to maintain a status quo on angel tax for startups, sources said and added the problematic issues were taken care of in February this year. Section 56 of the Act has come to be known as angel tax as wealthy individuals or angel investors putting their capital in …

Rahul Gandhi's promise on ease of doing business is election rhetoric at best; implementation is key, say industry experts
5 years, 9 months ago

Rahul Gandhi's promise on ease of doing business is election rhetoric at best; implementation is key, say industry experts

Firstpost  

The industry is in a wait-and-watch mood. Let’s see what comes after the dust of the elections settle down and a government is voted to power,” they said The startup sector is happy that it has been acknowledged by political parties when Congress President Rahul Gandhi announced a slew of proposals for the industry in an interview on Thursday. Political …

Congress to give 3-year blanket pass to new ventures, abolish angel tax: Rahul Gandhi
5 years, 9 months ago

Congress to give 3-year blanket pass to new ventures, abolish angel tax: Rahul Gandhi

Hindustan Times  

Unveiling his economic agenda, Congress President Rahul Gandhi Thursday said if voted to power his party will cut red tape for businesses, exempt new enterprises from seeking any permission in first three years, make it easier to get bank loans and scrap angel tax on start-ups. Congress to give 3-year blanket pass to new ventures, abolish angel tax: Rahul Gandhi …

Govt may exempt DPIIT-certified startups from angel tax; likely to raise investment limit to Rs 25-40 crore
5 years, 10 months ago

Govt may exempt DPIIT-certified startups from angel tax; likely to raise investment limit to Rs 25-40 crore

Firstpost  

The consideration assumes significance as several startups have claimed to receive angel tax notices, impacting their businesses. New Delhi: The government is considering giving complete exemption to startups from angel tax once they are certified by the Commerce and Industry Ministry, a move aimed at helping budding entrepreneurs, official sources said. Giving relief to budding entrepreneurs last year, the government …

I-T Department to soon decide on startups to be exempted from angel tax; multilayer checking system in place to find eligible firms
5 years, 11 months ago

I-T Department to soon decide on startups to be exempted from angel tax; multilayer checking system in place to find eligible firms

Firstpost  

Last month, the government eased the procedure for seeking income tax exemption by startups on investments from angel funds and prescribed a 45-day deadline for a decision on such applications. New Delhi: The Income Tax Department will soon decide on the kind of startups that can be exempted from angel tax, a top official said on Thursday. Central Board of …

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