ANGEL TAX
ET Startup Awards 2024: Union minister Piyush Goyal to grace tenth edition of awards
Union minister Piyush Goyal's first interaction with startup industry leaders at the ceremony post removal of the so-called 'Angel Tax' is expected to provide insights into the government's push to further support the new-age economy which has seen several companies go public this year.
India’s SaaS promise, challenges and opportunities: ET Soonicorns Summit 2024 to bring together industry leaders and innovative disruptors to outline the future
At the ET Soonicorns Summit 2024, on 20 September, take ownership of your startup journey as we pave the path for a resurgence after a steadfast focus on resilience showcased by the Indian startup ecosystem. If you are a stakeholder in the Software-as-a-Service space, here’s why you should not miss the panel, ‘Expanding the Indian SaaS Footprint at Home and Abroad: Scaling Strategies to Achieve the $37B Target. Gear up to access cutting-edge insights and strategies. Register now as seats are limited. Bengaluru beckons you!
Removed Angel Tax, taking policy measures to promote fintech sector: PM Modi
Prime Minister Narendra Modi on Friday said that the govt is making policy changes like the removal of Angel Tax to boost the fintech sector. Speaking at the Global Fintech Fest 2024, Modi asked regulators to address cyber frauds and highlighted fintech's role in promoting financial transparency and inclusion. He credited initiatives like UPI and DBT for India's fintech growth.
Reduction of Corporate Tax, removal of Angel Tax will help promote India-US economic ties: Ex-CEA Subramanian
The Indian government has announced measures to promote India-US economic engagement, including a reduction of corporate tax from 40% to 35% and the removal of the Angel Tax. The move is seen as a strategic move to strengthen India's economy and foster inclusive development. The budget also includes provisions for capital expenditure on infrastructure, which could boost job creation. The reduction of corporate tax is expected to encourage foreign companies to establish branches and offices in India, boosting foreign inflows.
Budget will spur job creation, boost investments in startups: Finance minister Nirmala Sitharaman
Finance Minister Nirmala Sitharaman stated that the budget proposals would boost job creation, invest in startups, and enhance economic growth. Speaking in Bengaluru, she highlighted the abolition of angel tax to support entrepreneurs. The budget also incentivizes job creation through internships and skilling programs. It assures funding for MSMEs during periods of stress. Sitharaman addressed opposition claims about state funding, noting significant financial allocations to Karnataka under Prime Minister Modi compared to the UPA period. The budget aims to leave more money with the middle class and focus on infrastructure development.
Removal of angel tax for startups to help attract investors: Piyush Goyal
Angel tax (income tax at 30% rate) was imposed on funding raised by unlisted companies, or startups, if their valuation exceeded the company's fair market value.
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Paytm's government nod; FM on angel tax
Paytm has secured government approval for a $5.97-million investment in a key subsidiary. This and more in today’s ETtech Top 5.
Angel Tax scrapped: FM Sitharaman explains the rationale behind removing the decade-old tax
The Union Budget 2024 brought respite for venture investors as it abolished the decade-old Angel tax. When asked about the reason behind the move, Sitharaman said that it was one of the many steps Centre took to help Indian startups thrive. This move, however, leaves those pending to pay their previously due angel taxes in a tough spot. Sitharaman has stated that the government is working to 'sort this out'.
Banks need to focus on their core business: Nirmala Sitharaman
Finance Minister Nirmala Sitharaman in an interview with ET has emphasized that banks must refocus on their primary roles of mobilizing deposits and providing loans, especially amid concerns about slowing deposit growth. Sitharaman reiterated the need for banks to prioritize their core functions—mobilizing deposits and lending—while still being free to pursue other activities.
ET Interview: New capital gains regime to aid future home buyers, says CBDT chairman Ravi Agarwal
CBDT Chairman Ravi Agarwal stated that recent tax changes will significantly benefit home buyers and investors. The new provisions, effective from the 2025-26 assessment year, lower capital gains tax on property sales held over two years to 12.5% from 20%, though without indexation benefits. This change is expected to be favorable compared to previous tax rates, according to Agarwal.
Union Budget 2024: FM Nirmala Sitharaman's 10 key announcements for India Inc
Budget 2024: India's Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25 on Tuesday, impacting India Inc. Key points include ending tax concessions for new manufacturing plants, revival of Vivad se Vishwas scheme, reduced TDS rates, gifts as asset transfers, shorter tax assessment time, removal of Angel tax, no prison risk for tax deductors, penalties for late filing, and changes to taxing rented properties for business purposes.
What does the Budget mean for common man, youth & industry? Nirmala Sitharaman explains
Finance Minister Nirmala Sitharaman addressed Congress' claims that BJP has borrowed their ideas, highlighted job creation efforts, defended initiatives like internships and angel tax abolition, and discussed subsidies and reforms. She emphasized youth employment schemes and criticized Congress for past inaction. Sitharaman also commented on the humour in media portrayals.
Capital gains tax rejig: Finance Minister explains Modi 3.0 govt's rationale
Budget 2024: The Union Budget saw Finance Minister Nirmala Sitharaman announce a new capital gains tax structure, claiming it would benefit most people by removing indexation. The long-term capital gains tax on property and gold was reduced from 20% to 12.5%. The changes aimed to simplify the tax regime and rationalize rates across different asset classes.
Family offices & LTCG tax; blue skies for startups in the red
Happy Thursday! The budget proposals on capital gains tax and angel tax removal create a favourable situation for millionaire family offices. More on this in today’s ETtech Morning Dispatch.
LTCG tax parity may bring more family offices to the startupland
The budget proposal to bring parity on long-term capital gains (LTCG) tax across all financial assets and abolish the angel tax will lead to more family offices investing in startups. These entities have increased their activity in startups over the past year. As per a PwC report, there were 45 family offices in 2018, which have zoomed to 300 now.
Capital gains tax rejig aims at simpler regime, says revenue secretary Sanjay Malhotra
The removal of indexation and the introduction of a lower capital gains tax rate aimed at simplification, as stated by Revenue Secretary Sanjay Malhotra. He noted the government's efforts to simplify the direct tax laws and rationalize customs duty slabs. While the new budget eliminates Angel tax, past cases remain under existing law. Despite concerns about the removal of indexation benefits for property, Malhotra emphasized the overall benefits and minor rate increases. Additionally, the government seeks to reduce disputes and litigation with fewer customs duty rates, aiming for 3-5 categories.
Abolition of angel tax will boost startup ecosystem: CBDT chairman
CBDT Chairman Ravi Agrawal said the removal of this tax will act to boost the startup ecosystem in India. He would urge the community to "please come forward, please invest as the country is waiting for your investment, initiatives and innovations". Asked how would a possible case of money laundering through investor funds be tackled after the removal of the Angel tax, he said if such a violation is found or it is detected that the fund has come through "undisclosed" sources, there are provisions in the respective statute and that will be taken care of.
Simplified FDI, reduced corporate tax rates will greatly enhance capital inflows: Deloitte India
Deloitte India highlighted the positive impact of Budget announcements on capital inflows, emphasising simplified FDI regulations, reduced corporate tax rates, and the abolition of the Angel tax to boost investment in startups. Economist Rumki Majumdar stressed the importance of stable capital for investment, particularly through FDI to enhance private capex. The rationalisation of customs duties, including changes in BCD rates for various sectors, aims to support domestic manufacturing and export competitiveness.
Angel tax was on investments, such inflows should not be taxed: DPIIT secretary on removal of levy
Giving a big relief to startups, finance minister Nirmala Sitharaman on Tuesday announced the removal of angel tax for all classes of investors. Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh said this will help in attracting foreign investments, promoting innovation and further strengthening the startup ecosystem of the country.
Boost to entrepreneurship, bid to curb speculation a hard balance
The budget presents a mixed bag for capital markets and entrepreneurship. Speculative trading faces increased taxes on futures and options, while startups receive support with lower capital gains and removal of 'angel tax'. A delicate balance is maintained between market stability and startup growth.
ETtech Budget Special: Angel tax scrapped, returns boost for VCs
Happy Wednesday! Finance minister Nirmala Sitharaman abolished the decade-old angel tax bringing widespread cheer in the overall startup economy. This and more in today’s ETtech Morning Dispatch.
Budget 2024: Centre abolishes angel tax in a major boost for startup ecosystem
Budget 2024: The Section 56 (II) (viib) of the Income Tax Act, known as angel tax, is applicable on any consideration of issue of shares that exceed the fair value of these shares issued by a privately-held company.
UK businesses, investors react positively to Union Budget
The Union Budget presented by Finance Minister Nirmala Sitharaman in the Lok Sabha has been met with enthusiasm from the UK business and investor community. Key proposals include a fall in the Corporate Tax rate for foreign companies from 40 to 35% and the abolition of the "Angel Tax." Experts believe that the budget's announcements on India's fiscal deficit, estimated at 4.9% of GDP for this financial year, will boost foreign investor sentiment towards the economy.
Budget 2024: Angel tax abolished, capital gains parity for VCs
The startup ecosystem has much to cheer about from the budget – from nixing the angel tax to slashing TDS for ecommerce operators and plans to set up export hubs, among other measures. We decode the fineprint of Budget 2024 in today’s ETtech Top 5.
ET Explainer: What is angel tax and why has FM Sitharaman abolished it?
FM Nirmala Sitharaman announced the abolishment of angel tax. Angel tax refers to the income tax levied by the government on funding raised by unlisted companies, or startups, if their valuation exceeds the company's fair market value. Read on to know more
Budget 2024: FM Sitharaman proposes to abolish angel tax for all investor class
Union Budget 2024-25: Finance Minister Nirmala Sitharaman on Tuesday proposed to abolish the angel tax for all investor classes while presenting the Union Budget for 2024–25. There were expectations that the removal of the angel tax for startups might be announced in the budget. A few days ahead of the budget, DPIIT Secretary Rajesh Kumar Singh had confirmed that the department called for the removal of the angel tax.
Budget 2024: Key takeaways for startup ecosystem
Finance minister Nirmala Sitharaman presented the Union Budget 2024 on Tuesday and announced a slew of initiatives to aid the growth trajectory of startups and small businesses. Sitharaman announced the long-awaited repeal of angel tax and certain financial instruments in the context of long-term capital gains.
'Long overdue': Startup industry, VCs cheer move to abolish angel tax
Budget 2024: Finance minister Nirmala Sitharaman abolished India’s angel tax, boosting the startup ecosystem. Industry leaders like Siddarth Pai, Mayank Kumar, Snapdeal founder Kunal Bahl, and Sumit Gupta praised the move.
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