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Budget 2024: Government to abolish angel tax on investment in startups, TDS rate reduced for e-commerce operators
Budget 2024: The removal of the angel tax is expected to give a boost to startups as it will help promote a more favorable environment for them. In search cases too, a time limit of six years before the year of search is proposed as against the current time limit of ten years. The TDS rate for e-commerce operators will be reduced from 1 percent to 0.1 percent.
Finance Minister Nirmala Sitharaman on Tuesday announced the abolition of Angel Tax for all classes of investors in startups. In her budget speech, she also announced various changes with respect to tax rates for certain financial instruments in the context of e-commerce players and long-term capital gains.
"First of all, to strengthen the Indian startup eco-system, promote the entrepreneurial spirit, and support innovation, I propose to abolish the so-called angel tax for all classes of investors," she said.
The removal of the angel tax is expected to give a boost to startups as it will help foster a more favorable environment for them. Sitharaman also proposed to completely simplify the income tax provisions for reopening and reassessment to reduce uncertainty and disputes.
