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Angel Tax, the demon that haunts startups

The Morning Brief

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Introduction

India is now the third largest ecosystem for startups globally and ranks second in innovation quality among middle-income countries. The government decided to bring into the fold of the Angel Tax funds from foreign investors who were so far exempt from it. Expanding the scope of the tax means big money for the government, but it just cuts deeper into what is already a very sore point as startups are seeing a funding crunch.

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