Finance Bill 2023: Angel tax another hiccup for start-ups amid funding woes

However, the Finance Ministry said that all concerns raised by stakeholders in implementing this proposal would be addressed

At a time when the technology sector is witnessing a funding winter, investment firms and start-ups haven’t received any significant relief from the proposed change in the angel tax regime. Experts say that this might create a hindrance to the flow of foreign funding for Indian start-ups.

Various stakeholders have been suggesting excluding investments from foreign companies in start-ups from the angel tax regime. However, as per the list of amendments to the Finance Bill, passed in the Lok Sabha on March 24, there is no change in the original proposal to angel tax.  The proposed changes will come into