Sakshi Education
In a significant move to bolster the startup ecosystem, the government announced the abolition of the angel tax, aiming to further encourage local talent and innovation.
Budget 2024 Key Highlights:
-
Abolition of Section 56(2)(viib):
- The industry has long advocated for the removal of Section 56(2)(viib) of the Income Tax Act, which they claimed hindered capital formation and innovation.
-
Simplification of Conditions:
- Previously, startups had to meet certain conditions to qualify for angel tax exemption, which were considered cumbersome and a barrier to attracting investment.
Also Read: Union Budget 2024-25 Highlights!
Economic Impact:
- Startup Job Creation:
- Over 1.14 lakh startups in India have created more than 12 lakh jobs.
- Funding:
- More than 31,000 tech startups have secured over $70 billion in funding from 2019 to 2023, according to a report by Nasscom and Zinnov.
Government Support:
- DPIIT Recognized Startups:
- As of February, 2,975 government-recognized startups have been granted Income Tax exemptions.
- In September last year, new angel tax rules were notified, exempting DPIIT-registered startups from the new norms. This exemption is expected to benefit over 80,000 startups.
The abolition of the angel tax marks a significant step toward nurturing the startup sector, simplifying investment processes, and fostering a more robust environment for innovation and growth in India.
Union Budget 2024: Boost to Youth Empowerment and Women in Workforce
Published date : 23 Jul 2024 04:10PM
More Articles
