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The controversial Angel Tax has been completely scrapped in the latest budget, providing relief to startups and angel investors.
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The tax was introduced in 2012 and had been a major challenge for founders and investors, leading to harassment and tax-related stress.
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The removal of Angel Tax is expected to benefit early-stage startups reliant on pure angel investments.
In a significant move, the latest budget has scrapped the controversial Angel Tax, providing relief to startups and angel investors. The tax was introduced in 2012 and had been a major challenge for founders and investors, leading to harassment and tax-related stress.
The removal of Angel Tax is expected to benefit early-stage startups reliant on pure angel investments. However, the amount of investment may not see a significant change, as most investments come from foreign institutional investors.
The industry had been struggling with Angel Tax due to arbitrary interpretations by income tax authorities concerning startup valuations. The tax was seen as a tool for harassment, with tax authorities disputing valuations at their discretion.
