Government's Move to Scrap Angel Tax Boosts Start-Up Ecosystem: Nasscom

Nasscom commends the government's decision to abolish the angel tax, which had been hindering the growth of India's start-up ecosystem despite its global ranking as the third-largest. Additional supportive measures include reduced TDS rates on e-commerce, expanded safe harbour rules, and a Rs 1000 crore venture capital fund for space tech.

Nasscom has praised the government's decision to abolish the angel tax, which had been hindering the growth of India's start-up ecosystem despite its global ranking as the third-largest. The move is seen as transformative for the sector.

Other supportive measures highlighted by the IT industry's apex body include the reduction in TDS rates on e-commerce operators, expansion in the scope of safe harbour rules, and streamlining of transfer pricing assessment procedures. Additionally, a Rs 1000 crore venture capital fund has been announced for space tech.

According to Nasscom, the government’s budget reflects India’s ambition to lead on the global stage while driving inclusive and sustainable advancement. The abolition of the 2% equalisation levy on e-commerce supply is also expected to boost the sector significantly.