Budget 2024 abolishes 'Angel tax' in India: Why it matters
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In a major move for the Indian startup ecosystem, Finance Minister Nirmala Sitharaman has announced the complete abolishment of Angel tax. Previously, unlisted startups faced a tax of 30.9% on investments exceeding the fair market value of their shares. Startups argued that Angel tax created a cash flow burden, deterred investors, and made it difficult to determine fair market value for young companies.