Current Affairs - Finance - Discussion

The angel tax, introduced in 2012 under Section 56(2)(vii B) of the Income Tax Act, 1961, was designed to curb black money laundering through inflated share sales by taxing excess funds raised above fair market value at a rate of 30.9%. Recently, in the Union Budget 2024-25, the Union Minister for Finance proposed to abolish the angel tax for all classes of investors. This decision aims to boost investment in startups and simplify the tax landscape for emerging businesses.