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 deal with additional tax liability by virtue of their investment in the startup,” said Siddarth Pai, co-founder of VC firm 3one4 Capital. No investor would touch these startups because any money they put into the startup would actually go towards clearing the older tax liability,” Pai said. “If money came in from hypothetically a State Bank of India or LIC into a startup, that would also be liable to tax because they’re not Sebi-registered AIFs,” Pai added.

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History of this topic

Indian startups no longer need yearly fund allocation, not many have lost unicorn status: Piyush Goyal
5 days, 4 hours ago

Indian startups no longer need yearly fund allocation, not many have lost unicorn status: Piyush Goyal

Live Mint  

Union Minister of Commerce and Industry Piyush Goyal, on Saturday, January 4, said that it is no longer necessary for Indian startups to receive annual allocations, reported the news portal CNBC-TV18. The Minister cited that the operating agency for the Startup India programme, SIDBI, has started receiving returns, with nearly ₹1,600 crore filling up its corpus of funds, according to …

From startup founders to athletes: How India’s angel investor landscape is evolving beyond wealthy individuals
6 days, 13 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 …

Fintech’s new fuel: Venture debt takes centrestage amid a funding crunch
1 week, 4 days ago

Fintech’s new fuel: Venture debt takes centrestage amid a funding crunch

Live Mint  

As venture capital investments into India’s financial technology sector plunged this year amid stringent regulatory oversight, fintech companies found another funding source become more readily available: venture debt. Consumer startups followed, raising $459 million in venture debt across 55 rounds this year, marking a 10% growth from the $416.4 million of venture debt they raised in 2023. Sharma said credit …

Sebi proposes reforms for angel funds, lowering entry barriers and enhancing investor flexibility
1 month, 3 weeks ago

Sebi proposes reforms for angel funds, lowering entry barriers and enhancing investor flexibility

Live Mint  

The Securities and Exchange Board of India has proposed sweeping changes to the regulatory framework governing angel funds under Alternative Investment Funds, aiming to boost investor participation and provide more flexibility to fund managers. However, Sebi argues that angel funds provide distinct advantages, including professional management, streamlined operations, and easier access to startup opportunities, warranting their continued inclusion under AIF …

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 …

Shaadi.com's Anupam Mittal praises Budget 2024 but says ‘ye dil maange more’
5 months, 2 weeks ago

Shaadi.com's Anupam Mittal praises Budget 2024 but says ‘ye dil maange more’

Hindustan Times  

Shaadi.com founder and Shark Tank India judge Anupam Mittal, said that startups are finally happy as the “much-dreaded angel tax” has been abolished as the entrepreneur reacted to the Union Budget 2024. He added, “Hopefully, this is a 1st step in many that not only levels the playing field but tilts it in our favour, so we can build truly …

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, 1 week 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 …

How can India become the No. 1 nation for startups? Amitabh Kant has some advice
9 months, 2 weeks ago

How can India become the No. 1 nation for startups? Amitabh Kant has some advice

India Today  

In the past eight years, India has transformed from having just 300 startups to becoming the third largest startup ecosystem globally with over 1,12,000 startups, said G20 Sherpa and former Niti Aayog CEO Amitabh Kant during the inaugural keynote address at the 'Startup Mahakumbh' held in New Delhi between March 18 and March 20. Here are the five pivotal things …

Angel One to raise up to ₹2,000 crore through preferential issue, QIP
10 months, 2 weeks ago

Angel One to raise up to ₹2,000 crore through preferential issue, QIP

Live Mint  

Angel One is planning to raise up to ₹2,000 crore capital through a preferential issue, further public offer, qualified institutions placement or other modes, said the company in a BSE filing on Thursday. Apart from the plan to raise funds, the board also approved an increase in the authorised share capital of the company from ₹100 crore to ₹120 crore. …

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 …

Indian startups witness 65.8% drop in funding between Jan-Nov 2023: GlobalData
1 year ago

Indian startups witness 65.8% drop in funding between Jan-Nov 2023: GlobalData

Live Mint  

Indian startups witnessed a 65.8% drop in funding in terms of value between January and November 2023, according to a report by Times of India. Citing data from GlobalData, Indian startups raised $6.9 billion across 1,013 venture capital funding deals in the past 11 months this year. Among the top VC funding deals in Indian startups this year were- $250 …

Venture Capital funding in India plunges over by 67% during Jan-Oct this year
1 year, 1 month ago

Venture Capital funding in India plunges over by 67% during Jan-Oct this year

Live Mint  

India witnessed a decrease in venture capital funding deals, with a total of 920 deals announced during January-October 2023. India holds a significant position in the Asia-Pacific market and is closely ranked after China in terms of both volume and value of venture capital funding deals. According to GlobalData's Financial Deals Database, India witnessed several venture capital funding rounds exceeding …

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 …

Indian startups set for more pain as funding crunch worsens
1 year, 8 months ago

Indian startups set for more pain as funding crunch worsens

Live Mint  

A funding squeeze at Indian startups that has already led to layoffs and delayed stock listings is set to worsen as investors reckon with stretched valuations and faltering consumption growth, likely laying the ground for industry consolidation. The prospect of fast rising consumption both offline and in India's digital space helped many startups clock multi-billion-dollar valuations in recent years, with …

Silicon Valley Bank Crisis: How India Can Save Its Fledgling Startup Ecosystem
1 year, 9 months ago

Silicon Valley Bank Crisis: How India Can Save Its Fledgling Startup Ecosystem

The Quint  

With more than 5,000 funded start-ups having raised over USD 135 billion in capital investment, India boasts of the third largest startup ecosystem in the world, which has also spawned more than 100 unicorns. While e-commerce and fintech have received more than half of the total investment, enterprise tech, Edutech, health-tech, and other sectors have seen many startups growing into …

'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 …

Budget 2023 Expectations: Foster tie-ups between government and stakeholders to support startups
1 year, 11 months ago

Budget 2023 Expectations: Foster tie-ups between government and stakeholders to support startups

Firstpost  

The Indian startup ecosystem has been witnessing an unprecedented boom in the last few years with new businesses emerging in a multitude of sectors. As a result, this year’s Union Budget 2023 is being closely watched by many startups, as they seek measures to support them in overcoming these difficult times. To ensure effective regulation of the rapidly developing startup …

Startup Layoffs: Overall Funding Is No Less This Year, But Why Firms are Firing Employees
2 years, 7 months ago

Startup Layoffs: Overall Funding Is No Less This Year, But Why Firms are Firing Employees

News 18  

Although start-ups are resorting to lay-off of employees as they cite cost-cutting as the primary reason, data show that the overall funding for these new-generation enterprises during January-April this year is almost the same as last year and even the number of companies raising over USD 100 million is also higher than last year. Interestingly, the data showed that the …

Global venture capital funds flock to India as China's appeal dims: Report
3 years, 1 month ago

Global venture capital funds flock to India as China's appeal dims: Report

Hindustan Times  

India is receiving investment from venture capital firms from around the world, suggesting a breakout moment for the country's startups, Nikkei Asia reported on Sunday. Citing the overall data from Tracxn, Nikkei Asia said that 597 venture capital firms have made 2,284 deals so far this year. Talking about the situation in China, the report said that Beijing's regulatory crackdown …

Start-up Founded by IIT Delhi Alumnus Raises Angel Investment to Support Indian SMEs Export Globally
3 years, 9 months ago

Start-up Founded by IIT Delhi Alumnus Raises Angel Investment to Support Indian SMEs Export Globally

News 18  

Invoice factoring start-up Reevoy, which allows Indian SME exporters to seek collateral-free working capital finance, has raised angel investment from 25 global investors, including PolicyBazaar co-founder Alok Bansal and Aspiring Minds co-founder Himanshu Aggarwal. “SMEs contribute approximately 30 per cent towards India’s global trade, whereas the share of banking credit is approximately 15 per cent. Reevoy was founded by IIT …

Indian Startups End 2020 on Strong Note Even as Chinese Investors Dry Up Cash Flow
4 years ago

Indian Startups End 2020 on Strong Note Even as Chinese Investors Dry Up Cash Flow

News 18  

Indian startups understandably saw a decline in the amount of money they raised through 2020, as the Covid-19 pandemic and its subsequent impact on Indian and global economies took its toll. According to consultancy firm Tracxn, 2020 marked the first year since 2016 when the total amount of funding raised by startups in India failed to cross the $10 billion …

Indian tech-led startups attract funding worth $2.5 billion in first quarter of 2020, up 14% on-year: Report
4 years, 8 months ago

Indian tech-led startups attract funding worth $2.5 billion in first quarter of 2020, up 14% on-year: Report

Firstpost  

Indian tech-led startups attracted funding worth $2.5 billion in the first quarter of 2020, a 14 percent rise compared to the same period last year, a report by research and consulting firm HexGn said New Delhi: Indian tech-led startups attracted funding worth $2.5 billion in the first quarter of 2020, a 14 percent rise compared to the same period last …

SaaS funding in India crosses $1 billion for the first time in 2019; has shown a 20x increase since 2009
4 years, 11 months ago

SaaS funding in India crosses $1 billion for the first time in 2019; has shown a 20x increase since 2009

Firstpost  

Chennai-based Freshworks, which has a funding of $400 million, leads the spike. The venture capital funding in the Software-as-a-Service startup space in India crossed $1 billion for the first time in 2019, data shows. Funding in the Indian SaaS ecosystem has increased 20 times in the last decade, data from Tracxn, a platform that tracks startup funding space, reveals. Four …

IAN marks final close of ₹375 crore maiden venture capital fund
5 years, 2 months ago

IAN marks final close of ₹375 crore maiden venture capital fund

Live Mint  

Indian Angel Network, a network of individual early-stage investors, has reached the final close of its maiden venture capital fund at ₹375 crore, a senior executive said. The IAN Fund is backed by institutional investors such as Small Industries Development Bank of India’s fund of funds, IIFL Holdings, Yes Bank, Max India, impact investment firm Gray Matters Capital and Hyundai. …

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 …

New govt should focus on improving startup ecosystem: IT industry veteran V Balakrishnan
5 years, 7 months ago

New govt should focus on improving startup ecosystem: IT industry veteran V Balakrishnan

Firstpost  

Hyderabad: The new government at the Centre should focus on improving the startup ecosystem as it’s a big employment generator and has the potential to replicate the country’s information technology success story, an IT industry veteran said on Thursday. Former chief financial officer of Infosys Ltd V Balakrishnan said the Narendra Modi government should focus on ease of doing business …

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 …

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