Angel tax is gone and SEBI changed the rules for angel funds. What does that mean for me as an angel?
Two things changed, and both are mostly good news for a founder who angel invests. Angel tax is gone: the rule that taxed a startup on money raised above its fair value was removed for all investors from FY 2024-25, so it no longer shapes valuations or paperwork on a deal. Separately, SEBI narrowed who can put money into a registered angel fund: since its September 2025 amendments, angel funds may take money only from accredited investors, a formal test of income and net worth (for example a net worth of ₹7.5 crore with at least half of it in financial assets) checked through an agency SEBI authorises. You can still invest directly in a friend's startup as an individual. Neither change alters the core risk: most early bets fail, a gain is long term only after 24 months, and the money is locked up for years. Keep angel cheques small next to your own company.
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3 resources, 2 India-specific, 3 link-checked.
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An explainer of SEBI's 2025 rules for angel funds, including the accredited investor requirement and what it means for who can invest through one.
The India reference on short vs long term capital gains, holding periods, and rates for equity, funds, and property, so you know the tax before you sell.
