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Budget 2024 removes Angel Tax, a major reform for startups, effective April 1, 2024.
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The budget introduces parity in capital gains tax rates for listed and unlisted securities, benefiting startup investors.
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The reforms are expected to boost startup funding and expansion, cementing Prime Minister Modi’s reputation as the “Startup PM of India”.
Startups and venture capitalists (VCs) have welcomed the reforms announced in Budget 2024, which address long-standing demands of the startup community. The removal of Angel Tax, a provision that taxed investments in startups, is a significant win for the industry. Introduced in 2012 to prevent money laundering, Angel Tax had become a major hurdle for startups raising funds.
The budget also introduces parity in capital gains tax rates for listed and unlisted securities, benefiting startup investors. This reform is expected to boost startup funding, which has primarily come from foreign sources due to the earlier tax differential. With the new reforms, startup investors are likely to see improved post-tax returns, fueling startup growth and expansion.
The reforms have been hailed as a major victory for Startup India, with Prime Minister Modi being credited as the “Startup PM of India”. The government’s efforts to promote startups and encourage private sector investment are expected to pay off, with startups leading the charge in driving economic growth.
