Is angel tax abolished from 2024?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerYes. The Finance Act 2024 removed Section 56(2)(viib) — the angel tax — for all investors, effective assessment year 2025-26. Share premium received on or after 1 April 2024 is no longer taxed. For earlier years it can still apply, so older rounds may still need the DPIIT exemption.

What changed and from when

The provision is gone for share issues on or after 1 April 2024. This applies to all investors, including foreign investors who were brought into its scope earlier.

Older rounds still matter

If you raised before this date, angel tax can still be raised in assessment — keep your valuation and DPIIT exemption records for those years.

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.