Removal of Angel Tax for Startups to Help Attract Investors: Piyush Goyal
By: Admin |July 29, 2024 |Categories: Income Tax News
Commerce and Industry Minister Piyush Goyal announced on Sunday that the removal of the angel tax, which was introduced in 2012 by the UPA government, for all classes of investors will significantly help startups attract investments.
Goyal also highlighted that the reduction in customs duty for gold and silver from 15% to 6% will benefit small artisans and promote the country’s gems and jewellery exports.
“The Budget 2024-25 has removed the angel tax, and through this measure, we will be able to attract investors into the country,” he stated during a post-budget interaction with the industry.
Additionally, Goyal informed that the budget has announced the setting up of 12 industrial townships across the country. One of these townships will be in Maharashtra, which is expected to create jobs and build a strong ecosystem for industry and trade.
The budget has also introduced steps to promote the diamond trade. India, a world leader in the diamond cutting and polishing industry, employs a large number of skilled workers. The budget announced that India would provide safe harbour rates for foreign mining companies selling raw diamonds in the country.
The angel tax, which imposed a 30% income tax on funding raised by unlisted companies or startups if their valuation exceeded the company’s fair market value, has been removed to encourage investment and growth in the startup sector.
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