Question

Which of the following tax was abolished by Finance Minister through Union Budget July 2024?

• A. Krishi Kalyan Tax
• B. Angel Tax
• C. Swachh Bharat Tax
• D. Fringe Benefit Tax

Answer 1

Answer:

B. Angel Tax

The primary objective of this tax was to prevent money laundering issues. Most new businesses don't keep up with the appropriate account books or show their assets correctly, leading to the creation of black money in India. Due to this flaw, the Income Tax department decided to tax the private companies on excessive share premiums received above the FMV.