Friday, June 21, 2024

Investment in Start-ups from 21 Nations Will Be Exempt from Angel Tax, Says CBDT

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In a major boost to the start-up ecosystem, the Central Board of Direct Taxes (CBDT) has announced that investments in start-ups from 21 nations will be exempt from angel tax. The move aims to encourage foreign investors to participate in India’s flourishing start-up landscape and foster entrepreneurship in the country.

The CBDT’s decision comes as a relief to start-ups and investors alike, as angel tax has long been a contentious issue, impeding the growth of innovative enterprises. The exemption will provide a much-needed impetus to the start-up ecosystem, allowing it to thrive and attract more funding from abroad.

Foreign investors from countries such as the United States, United Kingdom, Germany, Japan, and South Korea, among others, will now be able to invest in Indian start-ups without the fear of facing hefty tax burdens. This move is expected to open doors for international investors to explore the vast potential and promising ideas that Indian start-ups have to offer.

Start-ups are widely recognized as key drivers of economic growth and job creation. By exempting angel tax for foreign investments in start-ups, the CBDT aims to stimulate innovation, foster entrepreneurship, and boost the overall economy. This step will also promote cross-border collaborations, knowledge sharing, and technology transfer, enhancing India’s position as a global hub for innovation and entrepreneurship.

With its young and talented workforce, India has emerged as a hotspot for start-ups in various sectors, including technology, e-commerce, fintech, and healthcare. The exemption from angel tax for investments from 21 nations will provide the necessary support and confidence to both domestic and international investors to fuel the growth of these budding enterprises.

The CBDT’s decision reflects the government’s commitment to creating a favorable environment for start-ups and attracting foreign investments. By removing the burden of angel tax, India is poised to further solidify its position as a preferred destination for start-up investments, bolstering the country’s economy and nurturing a vibrant entrepreneurial ecosystem.

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