ENA Economy 2024-07-05 16:20:51 <p><span style="font-size:14px"><strong>New Delhi, Jul 5 (KNN)</strong> In a significant development for the Indian start-up ecosystem, the Commerce Ministry has recommended the removal of the controversial angel tax, according to a statement made by Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh on July 4.</span></p> <p><span style="font-size:14px">During a media address, Singh clarified, We have provided our inputs to the Finance Ministry. However, the final decision rests with them. He also noted that the issue was not raised during pre-budget consultations.</span></p> <p><span style="font-size:14px">The angel tax, introduced in 2012 as an anti-money laundering measure, has been a point of contention for start-ups and investors alike.</span></p> <p><span style="font-size:14px">Under this regime, funds raised by start-ups from angel investors at valuations exceeding the fair value of shares are subject to taxation, with the premium treated as income taxable at approximately 31 percent.</span></p> <p><span style="font-size:14px">The start-up community and venture capital investors have long advocated for the repeal of this tax, pinning their hopes on the current administration to address their concerns.</span></p> <p><span style="font-size:14px">While the Commerce Ministry's recommendation signals a potential shift in policy, the start-up ecosystem now awaits the Finance Ministry's verdict on this crucial matter.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 38487 https://knnindia.co.in/news/newsdetails/economy/commerce-ministry-recommends-removal-of-angel-tax-final-decision-awaits-finance-ministry 2024-07-05 16:20:51 knnindia.co.in