Removal of angel tax for startups to boost investor attraction

Angel tax removal: Commerce and Industry Minister Piyush Goyal announced on Sunday that the removal of the angel tax, initially introduced by the UPA government in 2012, for all classes of investors will significantly aid startups in attracting investments.

Goyal also noted that the reduction in customs duty on gold and silver from 15 per cent to 6 per cent will benefit small artisans and bolster the country's gems and jewellery exports.

"The Budget 2024-25 has eliminated the angel tax, which will enable us to attract investors into the country," he stated during a post-budget interaction with the industry.

Additionally, Goyal highlighted that the budget has provisioned for the establishment of 12 industrial townships across the country. One of these townships will be located in Maharashtra, expected to generate employment and foster a robust ecosystem for industry and trade.

The budget also includes measures to promote the diamond trade. India, a global leader in diamond cutting and polishing, employs a substantial number of skilled workers in this sector. The budget announced that India would implement safe harbour rates for foreign mining companies selling raw diamonds in the country.

The angel tax, an income tax levied at 30 per cent, was imposed on funding raised by unlisted companies or startups if their valuation exceeded the company's fair market value.

(With PTI inputs)