Budget Proposals Boost Millionaire Family Offices’ Startup Investments, India

Family offices of millionaires are poised to benefit from the recent budget proposals related to capital gains tax and angel tax, creating a favorable environment for increased investments in startups. The changes in LTCG tax parity and the elimination of the angel tax are expected to encourage more capital infusion from wealthy family offices into emerging companies, particularly in the tech sector. This shift underscores a growing trend of family offices viewing startups as a lucrative asset class, with a substantial increase in the number of such offices in recent years. The amendments announced in the budget are likely to attract significant domestic capital towards supporting tech companies with sustainable models, fueling the growth of the startup ecosystem. Additionally, a key amendment proposed in the Income Tax Act is set to benefit loss-making companies, including startups, by easing the burden of tax withholding on high turnovers. These developments are expected to have a positive impact on investments, innovation, and overall economic growth in the startup landscape.