Budget 2024: Nirmala Sitharaman removes angel tax to boost startup ecosystem

ZeeBiz Desk Jul 23,2024

In her Budget speech today, July 23, Finance Minister Nirmala Sitharaman announced removing angel tax for all classes of investors in startups.

Why angel tax is removed

[{"selector":"#anim-65b71692-3fa1-48f2-bb7c-4e000b4de723 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-4.6716880849338756%, 23.584905660377366%) scale(1.4716981132075473)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-a4a47039-f64d-49bd-b6d6-9dc1d3a49be4","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] [{"selector":"#anim-5f67d756-631c-4f99-b98e-157148ed32c2","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] The step is taken to boost the startup ecosystem in the country.

What did Finance Minster say?

[{"selector":"#anim-c5545a3a-0365-4af2-8632-6fd56260a3f8 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-1.9505256608136654%, 23.584905660377366%) scale(1.4716981132075473)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-5cd5bda9-1916-4771-bf36-ab82160132ac","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] [{"selector":"#anim-5b8ccd29-8cfb-4b04-b90b-09562b6a2f17","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Sitharaman also announced various changes to tax rates for e-commerce players and certain financial instruments in the context of long-term capital gains.

I-T provisions

[{"selector":"#anim-08e41400-6597-4de6-818d-13e486d29fdc [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-2.2716426241111853%, 23.584905660377366%) scale(1.4716981132075473)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-2fbef355-f05f-428b-8268-05fcb777f1f2","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] [{"selector":"#anim-b952caff-fb60-4ced-ae8c-69a7529ee7f2","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Sitharaman also proposed to thoroughly simplify the I-T provisions for reopening and reassessment to reduce uncertainty and disputes.

"First of all, to bolster the Indian start-up eco-system, boost the entrepreneurial spirit, and support innovation, I propose to abolish the so-called angel tax for all classes of investors," said Financial Minister.