Policy Next Karnataka Summit | Give us some time and we will solve angel tax issue, says Rajeev Chandrasekhar

The government needs some time to solve the angel tax issue even as there is pushback on the matter from revenue and taxation departments, Union Minister for Electronics and Information Technology Rajeev Chandrasekhar said on May 5.

"There is some pushback from the revenue and income tax departments in terms of misuse and so forth. But, in principle, we are fairly clear that we do not want any policy to be a road bump in the growth trajectory of our startups. This is an article of faith for us," the minister said at Moneycontrol's PolicyNext conference on The Big Karnataka Resurgence as the state readies to go into assembly polls later this month.

"You will see this in all of the rule-making that we will do. On this particular issue (of angel tax), there has been a lot of debate. Give us some time and we will solve it," he added.

If the funding winter was not enough of a problem, the government threw another curveball at startups with its Union Budget earlier this year. This is because an exemption for money raised from foreign investors under the angel tax regime has been done away with in the Finance Bill, 2023.