Pune: Startup founders and investors have welcomed the move in Union Budget 2024-25 to abolish angel tax levied on investments received by startups.

Anil Joshi, Managing Partner, Unicorn India Ventures said, "Angel Tax abolishment was long pending. FM has heard industry voice and has finally abolished it.

This will certainly help in expansion of angel investment in India and will take away a lot of burden from the minds of everyone on tax notice for tax paid investment. This will also free up a lot of domestic capital and improve the funding sentiment in a strong way.

Mayuresh Raut, Managing Partner, Seafund said, "This was an albatross that hindered much needed capital to be deployed to deserving founders. Removal of this dreaded tax will give a huge fillip to startups in the country and free up investors to focus on the investments without having anxiety on how to deal with their implications."

Jitin Bhasin, CEO and Founder of SaveIN said, "Angel tax abolition decision comes as a crucial fillip to a sector that has been reeling under the funding winter and the ambiguity of taxation.

Startup founders and investors will undoubtedly welcome this move, as it sets the tone for the next wave of innovative startups in India, which is already the 3rd largest startup ecosystem in the world. With over 1.14 lakh startups creating more than 12 lakh jobs so far, this number is set to grow, further driving economic growth and innovation."

Ninad Karpe, founder and partner, 100X.VC said, "Abolishing angel tax is one of the boldest moves made by the Finance Minister. It will be a big boost to the startup world and a game changer.

In addition, the space economy will get a boost with a VC fund of ₹1000 crores. Overall, it is a balance budget with a broad brush covering thrust on employment, skilling, infrastructure. It will greatly boost economic activity and will aid in job creation.”

Naina Parekh, Founder, EUME said, "The reduction of the TDS rate for e-commerce operators from 1 percent to 0.1 percent likely to ease their financial burdens for e-commerce businesses, allowing them to concentrate more on scaling their operations and driving innovation.

Furthermore, the new eco policy framework has put spotlight on the development of tourism and regional growth in states like Bihar and Odisha.

These states are projected to emerge as significant growth hubs, and this focused attention could stimulate local economies and open up new markets for D2C brands."

Sagar Agarwal, co-founder and managing partner, Beams Fintech said, "The announcement regarding long term capital gains tax rate being brought down to 12.5% for financial assets, as opposed to the previous rate of 20% with indexation benefit, is a positive development for financial investments and private equity and venture capital funds.

The reduced tax rate means a direct reduction in the cost of the sale of assets. This will result in higher overall returns and lower taxation for investors, which is beneficial for everyone, individuals, investors and private asset managers."