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Angel tax was on investments, such inflows should not be taxed: DPIIT secretary on removal of levy

Economic TimesEconomic Times Ā· 7m
Angel tax was on investments, such inflows should not be taxed: DPIIT secretary on removal of levy

The removal of the angel tax for startups has been a long-standing issue, as the tax on foreign investments was seen as a burden on the country's startup ecosystem. The decision to abolish the tax aims to attract more foreign investments, promote innovation, and ease the process of doing business in the country. This move will also reduce disputes and litigation and provide tax certainty and policy stability. The tax was seen as hindering genuine innovators and pushing them to seek investments abroad. With the removal of the tax, startups can now raise funds more easily, especially in emerging sectors such as deeptech, artificial intelligence, and clean energy.

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