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 of investors," she said. Startup leaders, industry analysts and investors have long called for scrapping the angel tax, since many young startups are reliant on foreign investors. Since this levy has stung for more than a decade since it was introduced in 2012, the withdrawal of angel tax entirely means a timely course correction as the government rolls out the red carpet for long-term strategic investment as well as more risk-capital to promote innovation and R&D," he said.

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History of this topic

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 …

Internship scheme sparks row, Congress says govt ‘copied’ key manifesto promise
5 months, 2 weeks ago

Internship scheme sparks row, Congress says govt ‘copied’ key manifesto promise

Hindustan Times  

The Congress on Tuesday claimed that finance minister Nirmala Sitharaman has a taken a leaf out of the Opposition party’s key poll promise of a Right to Apprenticeship Act, after she said in her budget speech on Tuesday that the government would launch an internship scheme for youth in 500 top companies. Congress leader Jairam Ramesh posted on X: “The …

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 …

'Welcome only 1...': Shashi Tharoor, P Chidambaram 'pleased' with Nirmala Sitharaman's announcement
5 months, 2 weeks ago

'Welcome only 1...': Shashi Tharoor, P Chidambaram 'pleased' with Nirmala Sitharaman's announcement

Hindustan Times  

Congress leaders Shashi Tharoor and P Chidambaram on Tuesday accused the BJP-led NDA government of plagiarising the Congress party's election manifesto and including the latter's promises in the Budget speech. Shashi Tharoor {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} Congress MP Shashi Tharoor called the Budget underwhelming. {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} The Angel Tax refers to the income tax levied by the government …

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 …

Budget 2024: Nasscom urges govt to set up group to study impact of angel tax
6 months, 2 weeks ago

Budget 2024: Nasscom urges govt to set up group to study impact of angel tax

New Indian Express  

BENGALURU: National Association of Software and Service Companies has said the government should set up a group comprising officials from the CBDT, MCA, DPIIT, SEBI, RBI and industry to study the impact of 12 years of implementation of the angel tax and suggest the way forward. In its pre-budget memorandum 2024-25, the Nasscom, which represents the country’s technology industry, pointed …

Budget 2024: Nasscom recommends government to set up group to study impact of angel tax
6 months, 2 weeks ago

Budget 2024: Nasscom recommends government to set up group to study impact of angel tax

New Indian Express  

BENGALURU: Nasscom has said that the government should set up a group comprising officials from the CBDT, MCA, DPIIT, SEBI, RBI and industry to study the impact of 12 years of implementation of the angel tax and suggest the way forward. In its pre-budget memorandum 2024-25, the Nasscom, which represents the country's technology industry, pointed out various issues in the …

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 …

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 …

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 …

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 …

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 …

Govt to form working group to resolve angel tax issue of startups
5 years, 11 months ago

Govt to form working group to resolve angel tax issue of startups

Live Mint  

The government has decided to form a small working group to look into the issue of angel tax being faced by startups and come out with a workable solution in 4-5 days, a top official said Monday. CBDT member Akhilesh Ranjan, who attended the meeting said, investors, entrepreneurs and founders have raised this issue and they were explained why this …

Fiscal incentives for IT, startups
5 years, 11 months ago

Fiscal incentives for IT, startups

Deccan Chronicle  

The Budget that will be presented on February 1, 2019 will have to factor the forthcoming general elections and I therefore expect it to be populist in nature. Last year’s Rs 2,000 crore allocation for the Pradhan Mantri Jan Arogya Yojana is grossly inadequate, and needs to be raised to at least '10,000 crore in order to provide cashless health …

Angel tax exemption for startups: DIPP invites views from stakeholders for better implementation of procedure
5 years, 11 months ago

Angel tax exemption for startups: DIPP invites views from stakeholders for better implementation of procedure

Firstpost  

On 16 January, 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 Department of Industrial Policy and Promotion on Thursday sought views from stakeholders for better implementation of the recently announced procedure for startups to seek angel tax …

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