ETtech Budget Special: Angel tax scrapped, returns boost for VCsWant this newsletter delivered to your inbox?
Finance minister Nirmala Sitharaman abolished the decade-old angel tax bringing widespread cheer in the overall startup economy.
This tax was introduced in 2012 to curb money laundering and is codified under Section 56(2)(viib) of the Income Tax Act.
The Centre's department for promotion of industry and internal trade (DPIIT) also batted for abolishing the angel tax Also read: ET Explainer: What is angel tax and why has FM Sitharaman abolished it?
“Given the mandatory dematting of securities, Section 68, disclosure of unlisted investments in tax returns has plugged the transparency gap for which angel tax was created,” said Snapdeal cofounder Kunal Bahl.“Finally, it is good to see angel tax abolished…Long overdue.