The recent decision by Finance Minister Nirmala Sitharaman to abolish the angel tax on foreign investments in Indian startups has been met with a wave of optimism from the startup community. This move, presented in the Union Budget 2024, is seen as an effort to revitalize a sector that has been grappling with a significant funding decline, often referred to as a "funding winter." However, while the scrapping of this tax may seem beneficial at first glance, it warrants a critical examination of its implications, potential benefits, and drawbacks.
