The Effects of the Angel Tax on the Indian Start-Up Ecosystem
DOI:
https://doi.org/10.47611/jsrhs.v12i4.5824Keywords:
Start-Ups, Taxation, Investment, IndiaAbstract
India is home to the world’s 3rd largest startup ecosystem and has produced a plethora of successful startups in the past decade, including Boat, Paytm, and Ola. However, the resurgence of the Angel Tax may hinder current growth and prevent India from reaching its goal of becoming the largest startup ecosystem in the world by 2030. This paper explores the questions: How will the tax affect start-up’s fund-raising efforts? What is the status of representations made by the various stakeholders who have raised genuine concerns on the amendment? Could there be ways to circumvent the hurdles that could impede genuine and legitimate growth in the startup ecosystem? Answering these questions is key to understanding how India’s economy will grow start-ups into world leading companies and as whole progress.
Downloads
References or Bibliography
Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. (2012). [CBDT 2012]. Retrieved from https://www.indiabudget.gov.in/budget2012-2013/ub2012-13/bh/bh1.pdf
Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. (2023). [CBDT 2023]. Retrieved from https://incometaxindia.gov.in/Lists/Press%20Releases/Attachments/1138/Press-Release-Changes-Proposed-To-RULE-11UA-And-Consequent-notifications.pdf
Trackxn. (2019). Retrieved from https://w.tracxn.com/offerings/companies-db
Business Today. (2022). Retrieved from https://www.businesstoday.in/latest/corporate/story/byjus-consolidated-losses-widen-nearly-20-times-to-rs-4589-cr-revenue-drops-marginally-347251-2022-09-14
Press information Bureau - Ministry of Commerce and Industry. (2023). Retrieved from https://pib.gov.in/PressReleasePage.aspx?PRID=1913977
Department of Economic Affairs and Communication. (2022). Retrieved from https://startupestonia.ee/visa/why-estonia
Ministry of Business, Innovation and Employment New Zealand. (2023). Retrieved from https://www.mbie.govt.nz/dmsdocument/27179-upstart-nation
Incorp advisors. (2023). Retrieved from https://incorpadvisory.in/blog/gift-city-ifsc-vs-singapore-why-gift-city-is-the-better-destination-for-stockbrokers/#:~:text=One%20of%20the%20most%20significant,investors%20to%20GIFT%20City%20IFSC.
Market Cap Network. (2023). Retrieved from https://companiesmarketcap.com/zomato/marketcap/#:~:text=Marker%20 cap%3A%20%249.22%20 Billion,cap%20 according%20to%20our%20 data.
CNBC. (2023). Retrieved from https://www.cnbctv18.com/business/companies/swiggys-losses-increased-by-80-pc-to-545-million-prosus-report-zomato-instamart-food-delivery-17056851.htm#
Jain, S., & Mathur, V. (2023). The Intersection of Angel Tax, FEMA, and Income Tax: Navigating the Regulatory Landscape for Indian Startups. FEMA, and Income Tax: Navigating the Regulatory Landscape for Indian Startups
Mathur, S. B., Bokephode, Sudhakar, & Balsaraf, D. D. (2022). The Angel Tax and Why It Matters to Start-Ups in India? In Indian Business Case Studies Volume VI. Oxford University Press
Published
How to Cite
Issue
Section
Copyright (c) 2023 Aarav Manek
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Copyright holder(s) granted JSR a perpetual, non-exclusive license to distriute & display this article.
