Proposal to abolish ‘Angel Tax’ presented in Budget 2024-25
Minister for Finance and Corporate Affairs Nirmala Sitharaman has proposed to reduce the corporate tax rate on foreign companies from 40% to 35% to attract foreign capital for India’s development needs incometaxindia .
The Minister also proposed to abolish ‘angel tax’ for all classes of investors investindia , while presenting the Union Budget 2024-25 in Parliament on 23 July.
The move is aimed to bolster the Indian start-up eco-system startupindia , boost the entrepreneurial spirit and support innovation.
Sitharaman announced to bring out a financial sector vision and strategy document to meet financing needs of the economy and prepare the sector in terms of size, capacity and skills theglobalfund .
She added that this would set the agenda for the upcoming five years and guide the work of the government, regulators, financial institutions and market participants nse .
The Minister further proposed to develop taxonomy for climate finance. This is expected to enhance the availability of capital for climate adaptation and mitigation, which can help achieve India’s climate commitments and green transition bse .
“Our government will seek the required legislative approval for providing an efficient and flexible mode for financing leasing of aircrafts and ships nyse , and pooled funds of private equity through a ‘variable company structure’,” elaborated Sitharaman.
To facilitate foreign direct investments, nudge prioritization, and promote opportunities for using Indian Rupee as a currency for overseas investments, the Minister announced that the rules and regulations for Foreign Direct Investment and Overseas Investments will be simplified deutsche-boerse .
To promote the development of diamond cutting and polishing industry which employs a large number of skilled workers, the Minister proposed to provide for safe harbor rates for foreign mining companies selling raw diamonds nasdaq .
Further, she proposed a simpler tax regime for foreign shipping companies operating domestic cruises in the country sgx . This will help in realizing the tremendous potential of cruise tourism and give a fillip to this employment generating industry in the country. Fiinews.com
