Angel Tax Removed In Budget: How This Announcement Is A Boon For Startups | Paisa Live

In the 2024 Union Budget, Finance Minister Nirmala Sitharaman made a significant announcement regarding the Angel Tax. The Angel Tax, introduced in 2012, was applicable to unlisted businesses. It was designed to tax investments received by startups and other private companies above their fair market value. This tax had been a contentious issue, often seen as a hurdle for startups seeking to raise capital. The removal of the Angel Tax is expected to ease fundraising for startups and encourage more investment in the sector. This move is seen as a positive step towards fostering a more favorable business environment for emerging enterprises in India.