Angel Tax Abolished: Boost for Indian Startups

In a move designed to stimulate investment in India’s burgeoning startup scene, Finance Minister Nirmala Sitharaman announced the elimination of the angel tax for all investor categories.

The angel tax, introduced in 2012 to curb money laundering, allowed authorities to tax startup funds if the investment exceeded the fair market value of shares as determined by a merchant banker. Over the years, startups and investors alike have criticized the tax for unfairly targeting legitimate investments.

Industry Cheers Abolishment

The news of the angel tax’s abolition was met with widespread praise from industry leaders. AltGraaf Jayaprakash, K, of AI Growth Limited, expressed enthusiasm, stating, “This will boost investments in the startup ecosystem and create jobs.” CoinDCX’s Sumit Gupta shared a similar sentiment, believing the move will “significantly bolster the Indian tech start-up ecosystem, especially in the Web3 sector.”Ravi Kaushik of Prosper Adventures considers the cancelation to be an open door “for new businesses to unreservedly raise capital from India’s flourishing working class.” Abhinav Jain, Prime supporter of Almonds simulated intelligence, considers it a “game-evolving move” that will infuse “genuinely necessary energy” into the startup scene. Ankur Mittal of Enunciation Point Adventures trusts the activity “can bring a ton of administrative lucidity” for financial backers.

Fillip for Startups

Industry experts predict the abolishment will significantly benefit the startup ecosystem. Parimal Heda of Go Digit General Insurance anticipates the move to bring in “much-needed capital, especially from foreign investors.” Mayuresh Raut of Seafund believes the removal eliminates “anxiety” for investors, enabling them to concentrate on investments. Anirudh Damani of Artha Venture Fund perceives the move as a means to streamline the investment process by eradicating complexities.

A Hub for Innovation

Ratna Mehta of Fundalogical Ventures believes the abolishment “will provide a boost to the budding Indian startup ecosystem” and help establish India as a leader in innovation.

This move by the Indian government signals a strong commitment to supporting and fostering the growth of its thriving startup ecosystem. By removing a significant barrier to investment, India is paving the way for a future fueled by innovation and entrepreneurial spirit.