Nirmala Sitharaman Abolishes Angel Tax in Union Budget 2024, Boosting Startups

Jul 23, 2024, 07:16 AM

Finance Minister Nirmala Sitharaman has announced the abolishment of the angel tax in the Union Budget 2024, presented in the Lok Sabha. The move aims to support the Indian startup ecosystem by eliminating the tax for all classes of investors. The decision is expected to bolster entrepreneurial spirit and innovation in the country. The angel tax, previously imposed on the capital raised by unlisted companies through the issue of shares via off-market transactions, will no longer be applicable, providing significant relief to startups and their investors. Additionally, the corporate tax rate on foreign companies will be reduced from 40% to 35%.