Angel Tax Removed from Budget: How This Announcement Is a Boon to Startups

In the Union Budget 2024, Finance Minister Nirmala Sitharaman made a significant announcement regarding the angel tax. The angel tax, introduced in 2012, was applicable to unlisted companies. It was designed to tax investments received by startups and other private companies above their fair market value. The tax has been a contentious issue, often seen as a hindrance to startups seeking to raise capital. The abolition of the angel tax is expected to make it easier for startups to raise funds and encourage more investment in the sector. The move is seen as a positive step towards creating a more conducive business environment for start-ups in India.