India seeds idea to remove tax

Startups in India are set to have more access to local angel funding as the government aims to remove a 30% tax on investments.

The government of India plans to remove a tax on startup seed funding that is sourced from India-based angel investors, according to the Hindu.

The move, which appears to form part of the Start Up India campaign we reported in November 2015, has been made to support startups in the country and encourage more investment in them.

Officials working for the Start Up India program have pointed to this tax as the reason that 90% of India-based startups are funded by non-India-based venture capital firms and angel funds.

The tax provisions currently categorise angel investments as the investee company’s income, meaning the startup loses approximately 30% of the sum.

See more from this Government Report: India


Copyright Mawsonia Limited 2010. Please don't cut articles from or the PDF and redistribute by email or post to the web without written permission.

Most read

  1. Benson Hill to grow with $25m series B

    March 30, 2017

  2. STT reinforces Armor with $89m investment

    April 06, 2017

  3. UK to review tax breaks

    April 03, 2017

  4. BDC helps accelerate Calgary startups

    April 13, 2017

  5. Enterprise Ireland allocates $47m to startups

    April 05, 2017


  • 23 May - 24 May, 2017

    GCV Symposium 2017 - London

    Join 400+ business leaders from the corporate venturing and wider high growth business ecosystem for the two-day 2017 GCV Symposium.

  • More Events