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Angel tax was figment of people’s imagination: Piyush Goyal

He stated that the finance minister Nirmala Sitharaman had categorically clarified that there will be no harassment whatsoever.

ET Bureau|
Aug 23, 2019, 08.04 PM IST
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ET Online
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He argued that in a sense that section was only to curb the malpractice of creating capital falsely with no value in the company.
The minister of commerce and industry and railways said that the angel tax was a figment of people’s imagination at ET Startup Awards.

“There never was an angel tax. It was a figment of imagination,” Goyal said. He explained that the tax has been there for years. “It was to stop shell companies who used to create capital out of nowhere,” he explained.

He argued that in a sense that section was only to curb the malpractice of creating capital falsely with no value in the company. The complaints of entrepreneurs and investors was borne out, “one or two over-zealous officers who may have used that section to harass startups and then one thing led to another and then it went viral as an angel tax.”

He stated that the finance minister Nirmala Sitharaman had categorically clarified that there will be no harassment whatsoever. He asked all entrepreneurs affected by these officers to register their complaints with Department for promotion of industry and internal trade (DPIIT). “But that section will be needed to ensure that money laundering can be curbed,” he said.

At a press conference earlier in the day, Sitharaman said that it has been decided to set up a cell under a member of the CBDT. “A member will head a cell. Under him, problems will be addressed for startups.”

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