Abolishing angel tax for startups to help attract investors

MUMBAI, July 28: Commerce and Industry Minister Piyush Goyal on Sunday said the abolition of angel tax, introduced in 2012 by the UPA government, for all types of investors will help startups attract investments.
He also added that reducing customs duty on gold and silver from 15 to 6 percent would not only help small artisans but would also have a positive impact on exports of domestic gemstones and jewelry.
“The 2024-2025 budget has abolished the tax on business angels, which will help us attract investors to the country,” he said during a meeting with industry representatives after the budget announcement.
Goyal further informed that the budget announced the setting up of 12 industrial cities in the country.
He added that one of them will be set up in Maharashtra and will help create employment and a strong ecosystem for industry and trade.
The budget also announced actions aimed at promoting the diamond trade.
India is a world leader in the diamond cutting and polishing industry, employing a large number of skilled workers. The budget announced that India will provide safe rates for foreign mining companies selling rough diamonds in the country.
The “business angel” tax (30% income tax) was levied on funds raised by unlisted companies or start-ups if their valuation exceeded the company’s fair market value. (PTI)