Q. Consider the following statements:
1.Angel tax refers to the income tax payable on capital raised by unlisted companies.
2.As per Budget 2023-24, startups certified with the Department of Promotion of Industry and Internal Trade (DPIIT) are exempted from the angel tax.
Select the correct statement using the code given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Explanation –

Statement 1 is correct. Angel tax refers to the income tax payable on capital raised by unlisted companies.

Statement 2 is incorrect. As per Budget 2023-24, startups registered with the Department of Promotion of Industry and Internal Trade (DPIIT) are exempted from the angel tax. The certified ones will have to pay additional taxes.

Source: ForumIAS

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