New Delhi, Aug 23 (IANS): In a major relief to entrepreneurs and startups, Finance Minister Nirmala Sitharaman on Friday announced that the 'angel tax' provision will be withdrawn for startups and their investors.
Announcing measures to boost the subdued economy, the Finance Minister said that Section 56 2(b) of the Income Tax Act will not be applicable on startups registered under the Department for Promotion of Industry and Internal Trade (DPIIT).
Angel tax has been a major issue among entrepreneurs and in the startup ecosystem. Although the government announced some measures earlier, but the startups were not satisfied and wanted a complete revocation of the tax liability.
Sitharaman also announced several other measures to ease tax liabilities and address the ongoing concerns of tax harassment by tax officials.