While the second edition of Narendra Modi leadership is setting tone for next level growth, Indian Startups have started expressing their wishlist for Union Budget from the new regime. They have demanded that the Modi 2.0 government should immediately remove the Angel Tax being levied on them as it haunts both entrepreneurs and investors.
For a Make in India versus Register in India, founders of startups have huge expectations from the upcoming budget to make India the preferred Hub, especially for the startup sector. “Tax woes like Angel Tax continue to haunt Indian entrepreneurs and investors. Several Indian startups, although operating in India, have registered their companies in Singapore to benefit from the mature funding opportunities, ease of doing business, lower capital gain tax from selling of shares by investors; Continue the policy of reducing corporate taxes, and stable economic policies (Lowering the Compliances required to be met by Startups, reduced or zero rate of TDS, encouraging VCs by requiring less stringent paperwork). Indian startups are literally going places today & the overpowering regulations can dampen the spirits & the Pride of Make in India & Registered in India,” this was quoted by Vinay Agrrawal – Founder & CEO at Hubbler in country’s leading media — Zee Business.
While advocating the aspect of removal of the Angel Tax, Vinay Singhal, Co-Founder & CEO, WittyFeed also said in the same report, “The plight of dealing with Angel Tax has been intact for long. Angel Tax has emerged as one of the key issues faced by the Indian startup ecosystem. A lot more regarding the same needs to be addressed by the Government to boost angel investments in the country.” Vinay Singhal went on to add that the startup ecosystem is expecting the government to provide for simpler regulations surrounding the tax levied upon Employee Stock Options (ESOPs). The same goes for StartUp India, Government of India’s flagship initiative wherein policies abound but the realization on the ground differs the expectation. It will help if the intent on paper is transformative enough to change the landscape of startups in India for real.