Budget 2024: Angel Tax Abolished For All Tax Classes By Finance Minister Nirmala Sitharaman

Budget 2024 Update | The Indian startup ecosystem is buzzing with innovation and ambition. To further fuel this growth, the government offers various incentives, but one term that often sparks debate is "Angel Tax." Finance Minister Nirmala Sitharaman has now proposed to remove the Angel Tax. Contrary to its name, Angel Tax isn't a tax break. It's a provision under Section 56(2)(viib) of the Income Tax Act, 1961. It essentially treats the investment received by startups from external investors as "income from other sources" and taxes it at a rate of 30%.