Shaadi.com founder and Shark Tank India judge Anupam Mittal, said that startups are finally happy as the “much-dreaded angel tax” has been abolished as the entrepreneur reacted to the Union Budget 2024. He added, “Hopefully, this is a 1st step in many that not only levels the playing field but tilts it in our favour, so we can build truly global companies from Day 1.”
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What is angel tax?
Angel tax is a provision under Section 56(2)(viib) of the Income Tax Act, 1961 which classifies investments from external investors received by startups as “income from other sources,” taxing them at a rate of 30%.
This has been abolished now.
{{/usCountry}}This has been abolished now.
{{/usCountry}}Praising the budget, Mittal said, “LTCG has also been harmonised across pvt and public cos at 12.5%. Another shot in the arm for startup investors.”
Although, he said that he wanted more from the Budget, saying “Ye dil maange more (my heart wants more)”, adding that next on the list should be taxing esops only on exit and giving tax credit for startup investments.
If this is done, “Aag lag jaayegi", he said.
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