India's Budget 2024-25 removes the angel tax for startups, aiming to attract investments and boost the country's economy. The move will also benefit the gems and jewellery sector with a reduction in customs duty.
Illustration: Dominic Xavier/Rediff.com
Mumbai, Jul 28 (PTI) Commerce and Industry Minister Piyush Goyal on Sunday said that removal of angel tax, which was introduced in 2012 by the UPA government, for all classes of investors will help startups attract investments.
He also said that the customs duty reduction for gold and silver from 15 per cent to 6 per cent will not only help small artisans but also promote the country's gems and jewellery exports.
"The Budget 2024-25 has removed the angel tax and through it, we will be able to attract investors into the country, he said here at a post-budget interaction with the industry.
Further Goyal informed that the budget has announced the setting up of 12 industrial townships in the country.
He said that one of these will be in Maharashtra and it will help create jobs and a strong ecosystem for the industry and trade.
The budget has also announced steps to promote diamond trade.
India is a world leader in the diamond cutting and polishing industry, which employs a large number of skilled workers. The budget has announced that India would provide for safe harbour rates for foreign mining companies selling raw diamonds in the country.
Angel tax (income tax at 30 per cent rate) was imposed on funding raised by unlisted companies, or startups, if their valuation exceeded the company's fair market value.
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