Union Budget 2024: Angel Tax For All Classes Of Investors To Be Abolished

In a bid to bolster the Indian startup ecosystem, the Centre today announced the abolishment of angel tax for all classes of investors.

Angel tax is levied on the capital raised via the issue of shares by unlisted companies from an Indian investor if the share price of issued shares is seen in excess of the fair market value of the company. The excess realization is considered as income and is taxed accordingly.

"To bolster the Indian startup ecosystem, boost the entrepreneurial spirit, and support innovation, I propose to abolish the so-called angel tax for all classes of investors," Finance Minister Nirmala Sitharaman said in her Union Budget 2024 speech.

New Tax Regime Slabs Changed

Finance Minister Nirmala Sitharaman also said the standard deduction in the new tax regime will be increased from Rs 50,000 to Rs 75,000.

She also announced revisions to tax slabs in the new regime.

The revised slabs are as follows:

Income up to Rs 3 lakh - Nil
Rs 3 lakh to Rs 7 lakh - 5 per cent
Rs 7 lakh to Rs 10 lakh - 10 per cent
Rs 10 lakh to Rs 12 lakh - 15 per cent
Rs 12 lakh to Rs 15 lakh - 20 per cent
Above Rs 15 lakh - 30 per cent

As a result, Ms Sitharaman said, salaried employees can save as much as Rs 17,500 in the new regime.

There will be no change in the old tax slabs, she said.

from NDTV News- Topstories https://ift.tt/NRcQJrA