Abolition of Angel Tax will boost startup ecosystem: CBDT chairman

The abolition of Angel Tax for all classes of investors will act to “prompt” innovators and venture capitalists to better invest in startups and any instances of money-laundering there will be taken care of by the existing legal mechanism, CBDT Chairman Ravi Agrawal said on Wednesday.

He said the removal of this tax will act to boost the startup ecosystem in India. He would urge the community to “please come forward, please invest as the country is waiting for your investment, initiatives and innovations”, Agrawal told news agency PTI.

Asked how would a possible case of money laundering through investor funds be tackled after the removal of the Angel Tax, he said if such a violation is found or it is detected that the fund has come through “undisclosed” sources, there are provisions in the respective statute and that will be taken care of.