StartupBoard Commends New Budget for Eliminating Angel Tax

New Delhi, Jul 24 (KNN) In a recent analysis of the Union Budget, Ashish Jain, Founder and CEO of StartupBoard, highlighted several key reforms that could significantly impact the startup ecosystem in India.

With his decades of experience in the field, Jain offered insights into the most crucial changes introduced by the government.

One of the most celebrated reforms is the abolition of the Angel Tax. Initially introduced to prevent potential hawala transactions, the tax had unintentionally hindered legitimate foreign investments in startups. "It's heartening to see it abolished," Jain remarked, emphasising the positive impact this move could have on external investment flows into the country.

The budget also placed a strong emphasis on job creation and skill development, addressing the needs of India's young workforce. With over 60 per cent of the population in the working age group, the government's focus on skilling initiatives is timely.

Jain praised the innovative internship scheme, where the government will provide internship stipends while private companies bear training costs. "This well-constructed program will help companies identify good talent and provide participants with real-life skills, enhancing their employability," he explained.

Another significant development is the allocation of Rs 1,000 crore for space technology development. Jain believes this will catalyse the growth of startups in the space tech sector, potentially establishing India as a major exporter in this field within a few years.

This initiative is further supported by a Rs 1 lakh crore financing pool to boost private sector-driven research and innovation at a commercial scale.

The Critical Minerals Mission, aimed at securing raw material supply for 15 key minerals, was also highlighted by Jain. He sees this as a strategic move to compete with China's global mineral claims and to develop local industries in sectors such as solar panels, batteries, and electronics.

However, Jain noted one potential drawback in the budget: the increase in Long Term Capital Gains (LTCG) tax to 12.5 per cent and Short Term Capital Gains (STCG) tax to 20 per cent. With the stock market steadily growing and attracting retail investors seeking additional income, these tax hikes could dampen enthusiasm.

Overall, Jain's analysis paints a picture of a budget that largely supports the growth and development of startups in India, with strategic investments in key areas like space technology, skill development, and critical minerals, while also addressing some longstanding concerns like the Angel Tax.

(KNN Bureau)