“This is essential for startups to remain in India and build from here. This is a major step forward for Indian startups. It is a watershed moment in the Indian startup story,” he said.
Also read | ET Explainer: What is angel tax and why has DPIIT sought its removal?
The move has been widely praised across the investment and startup sectors. Mayank Kumar, managing director of edtech firm UpGrad, noted that the government’s decision will provide a significant boost to the startup ecosystem, fostering additional investments, growth opportunities, and innovations in India.
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Taking to microblogging platform X, Snapdeal CEO Kunal Bahl described the announcement as “fantastic news,” while Sumit Gupta, co-founder of CoinDCX, highlighted the potential benefits for early-stage Web3 companies. Gupta expressed optimism about increased investor interest in the future. Other founders like Ashish Singhal of PeepalCo also gave the move a thumbs-up.
Deepak Shenoy, founder and CEO of CapitalMind, termed the decision a “great” development. “Any startup getting investment doesn’t have to get knickers in a twist about paying income tax on the amount invested,” Shenoy wrote on X.
Dinesh Pai, head of investment at Zerodha’s investment arm Rainmatter, described the abolition of the angel tax as a much-needed advancement for the startup ecosystem, anticipating positive impacts on the sector.
Vikram Chopra, CEO of Cars24, said repeal of angel tax is, “like a turbo boost we needed, folks. No more unfair tax hurdles. Time to unleash a herd of unicorns!”
However, Apoorva Ranjan Sharma, cofounder and managing director of Venture Catalysts, while welcoming the move, cautioned that the ecosystem needs to wait for the final print to understand its real impact.