Do you know angel tax no longer exists for any investor class?

Section 56(2)(viib) of the Income Tax Act - the provision that taxed share premium over fair market value as "income from other sources" - was abolished by the Finance (No. 2) Act, 2024, effective assessment year 2025-26, for resident and non-resident investors alike. Many founders still structure rounds around an exemption that no longer needs to be claimed; the exposure that remains is only for share issuances before 1 April 2025, which can still face scrutiny.