News & Media 24th Jul 2024

What is ‘Angel tax’ that was scrapped in Budget 2024

Authors

Rahul Charkha Partner | Pune

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Earlier this year, in the interim budget presented in February, the government proposed extending tax incentives for startups and investments backed by sovereign wealth or pension funds until March 2025. The angel tax, formally known as Section 56(2)(viib) of the Income Tax Act (ITA), was introduced in 2012. The Finance Minister Nirmala Sitharaman on Tuesday scrapped the angel tax in a bid to strengthen the startup ecosystem and to support innovation in the country.

Sonu Vivek from India Today writes on article, “What is ‘Angel tax’ that was scrapped in Budget 2024” with insights from Rahul Charkha.

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