Question:

Recently, the Government of India relaxed the Angel Tax Norms for Start-ups and enhanced the investment limit to:

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Policy changes for start-ups are often part of larger economic reforms — knowing the figures and the intent behind them is important for exams.
Updated On: Aug 13, 2025
  • Rs. 25 Crore
  • Rs. 20 Crore
  • Rs. 15 Crore
  • Rs. 30 Crore
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The Correct Option is A

Solution and Explanation

The Government of India, in order to encourage entrepreneurship and ease fundraising for start-ups, revised the Angel Tax Norms by raising the investment exemption limit from Rs. 10 crore to Rs. 25 crore. This change allowed eligible start-ups to receive higher investments without attracting the so-called “angel tax,” which is essentially income tax levied on the capital raised by unlisted companies through the issue of shares above the fair market value.
Options (B), (C), and (D) do not match the updated official limit as announced in the policy change.
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