Tech3 | Ashneer Grover wants to get out of the gutter; Angel tax hit for Mauritius, Singapore; and more

In today’s Tech3 newsletter, Angel tax hit for Singapore, Mauritius; Ashneer Grover wants to get out of the gutter

Breaking: Info Edge writes off entire investment in Bijnis

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In today’s newsletter:

• Angel tax hit for Singapore, Mauritius?
• Ashneer Grover wants to get out of the gutter
• IAMAI's new leadership to take on Google

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Story 1

Angel tax hit for Singapore, Mauritius?

The government recently released a white list of 21 nations that are exempt from angel tax provisions, which initially provided some relief. However, it was noticed that a few important regions were not included in the list.

Driving the news: Investments coming from Singapore, Mauritius, and the Cayman Islands will still be subjected to angel tax.

• Interestingly, these three regions are among the top seven sources of Foreign Direct Investment (FDI) into India. Additionally, investors from regions that are exempt often route their funds through these three countries.

Taxing issue: The fact that a 25% angel tax applies in these three regions may discourage investment in India, particularly at a time when startups in the country are already facing fundraising obstacles.

"The implication of this (notification) is that the funding winter will end up getting even more protracted because the clarity that people were seeking has not fully come through…," said Siddarth Pai, founding partner at 3one4 Capital.

Some support: The move received mixed responses from the ecosystem, with some expressing concerns about reduced financial inflow into India, while others showed support.?

"Places like Singapore, Mauritius, Cayman Islands and the Netherlands are notorious as pooling destinations. Singapore has a deep relationship with Chinese investors," said an investor

The angel tax regime was originally introduced in 2012 as an anti-abuse measure to prevent money laundering.

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