India Abolishes Angel Tax in 2024 Budget, Raises Capital Gains Exemption

Jul 23, 2024, 06:57 AM

The Indian government has abolished the Angel Tax, a long-standing demand from the startup community. This move, announced by Union Finance Minister Nirmala Sitharaman during the 2024 budget session, is expected to significantly benefit the startup ecosystem by encouraging investments from all classes of investors. Additionally, the budget proposes to increase the capital gains exemption limit to Rs 1.25 lakh per year and reduce the corporate tax rate for foreign companies from 40% to 35%. The monetary limits for filing tax appeals have also been increased to Rs 60 lakh for the Income Tax Appellate Tribunal (ITAT), Rs 2 crore for High Courts, and Rs 5 crore for the Supreme Court.