Finance Minister Nirmala Sitharaman Abolishes Angel Tax To Boost Start-Up Ecosystem, What Is Angel Tax | ABP Live

In her record seventh budget speech, Finance Minister Nirmala Sitharaman announced significant measures to support India's start-up ecosystem, including the abolition of the Angel Tax. She stated, "To bolster the Indian start-up ecosystem, boost the entrepreneurial spirit, and support innovation, I propose to abolish the so-called angel tax for all classes of investors." The Angel Tax refers to the income tax liability that arises when unlisted companies issue shares to Indian investors at a price exceeding the company's fair market value. When the share price is deemed higher than the company's actual worth, the difference is treated as taxable income. This move aims to encourage investment and innovation in the start-up sector.