Startup Budget 2024: FM Nirmala Sitharaman Announces No Angel Tax For Investors, Everything You Need to Know

Startup Budget 2024: Finance Minister Nirmala Sitharaman announced in the budget session that the Angel Tax would be completely eliminated. The removal of the angel tax is viewed as a significant victory for the Indian startup ecosystem. By removing this tax, startups will experience less financial scrutiny and administrative burdens. In this video, our expert will discuss what impact this huge reform will make in the Indian Startup market, and will share many insights. 

What is Angel Tax?

When a startup or unlisted company raises funds and its valuation exceeds the fair market value, the government levies taxes on it. It went into effect in 2012 to combat money laundering. However, the angel tax has unintentionally created numerous barriers to fundraising. The removal of the Angle Tax appears to be extremely beneficial to start-ups, as it will allow them to focus more on innovation and growth, potentially strengthening India’s position as a global startup hub.