Angel tax removed: Boost for Startups, says Goyal

Commerce and Industry Minister Piyush Goyal on Sunday lauded the removal of the angel tax, a move he believes will significantly boost investment in startups.

 

The angel tax, introduced in 2012 by the UPA government, imposed a 30 percent income tax on funding raised by unlisted companies if their valuation exceeded the company's fair market value. The abolition of this tax for all investor classes is expected to make India an attractive destination for startup investments.

 

Speaking at a post-budget interaction with industry leaders, Goyal emphasized the positive impact of the 2024-25 budget on various sectors. "The Budget 2024-25 has removed the angel tax and through it, we will be able to attract investors into the country," he stated.

 

Goyal also highlighted the reduction in customs duty for gold and silver, slashed from 15 percent to 6 percent. This cut aims to support small artisans and boost the country’s gems and jewellery exports.

 

Further initiatives announced in the budget include the establishment of 12 industrial townships across the country. Goyal pointed out that one of these townships will be in Maharashtra, which is expected to create numerous jobs and strengthen the industrial and trade ecosystem in the region.