Question:medium

Recently, the Government of India relaxed the Angel Tax Norms for Start-ups and enhanced the investment limit to:

Show Hint

Policy changes for start-ups are often part of larger economic reforms — knowing the figures and the intent behind them is important for exams.
Updated On: Jul 15, 2026
  • Rs. 25 Crore
  • Rs. 20 Crore
  • Rs. 15 Crore
  • Rs. 30 Crore
Show Solution

The Correct Option is A

Approach Solution - 1

This question is a straightforward recall of a policy figure, the revised angel tax exemption limit for start-ups. The three wrong options, Rs. 20 crore, Rs. 15 crore and Rs. 30 crore, are all plausible sounding numbers but none of them is the figure the government actually notified.

The actual change raised the exemption ceiling from Rs. 10 crore to Rs. 25 crore, letting start-ups take in higher investment without it being treated as income for angel tax purposes. This was done specifically to make it easier for young companies to raise funds.

So the correct answer is Rs. 25 Crore.

Was this answer helpful?
0
Show Solution

Approach Solution -2

Before this relaxation, start-ups could only raise up to Rs. 10 crore without the investment above fair market value being treated as taxable income, a limit that many young companies said was too restrictive for growth stage funding.

  1. Rs. 25 Crore: the government's revised ceiling, more than double the earlier limit, meant to make it easier for recognised start-ups to attract larger investments.
  2. Rs. 20 Crore: below the actual notified ceiling.
  3. Rs. 15 Crore: only a modest rise over the old Rs. 10 crore limit, not matching the scale of relief that was actually announced.
  4. Rs. 30 Crore: above the figure that was actually set.

Given how large a jump the reform represented over the previous Rs. 10 crore cap, Rs. 25 crore is the figure that matches.

Therefore, the correct answer is Rs. 25 Crore.

Was this answer helpful?
0

Top Questions on Current Affairs

Questions Asked in CLAT exam

Read the passage and answer the question.

Passage (extract): The work which Gandhiji had taken up was not only regarding the achievement of political freedom but also the establishment of a new social order based on truth and non-violence, unity and peace, equality and universal brotherhood and maximum freedom for all. A new order cannot be established without radically changing the mind and attitude of men towards property and, at some stage or the other, the 'haves' have to yield place to the 'have-nots'. We have seen, in our time, attempts to achieve a kind of egalitarian society and the picture of it after it was achieved. But this was done, by and large, through the use of physical force. It may even be that, like a gas kept confined within containers under great pressure, or water held back by a big dam, once the barrier breaks, the reaction will one day sweep back with a violence equal in extent and intensity to what was used to establish and maintain the outward egalitarian form. This enforced egalitarianism contains, in its bosom, the seed of its own destruction. If egalitarianism is to endure, it has to be based not on the possession of the maximum material goods by a few or by all but on voluntary, enlightened renunciation of those goods which cannot be shared by others or can be enjoyed only at the expense of others.

According to the passage, egalitarianism will not survive if
View Solution
Read the passage and answer the question.

Passage (extract): The work which Gandhiji had taken up was not only regarding the achievement of political freedom but also the establishment of a new social order based on truth and non-violence, unity and peace, equality and universal brotherhood and maximum freedom for all. This unfinished part of his experiment was perhaps even more difficult to achieve than the achievement of political freedom. In the political struggle, the fight was against a foreign power and all one could do was either join it or wish it success and give it his/her moral support. In establishing a social order on this pattern, there was a strong possibility of a conflict arising between diverse groups and classes of our own people.

According to the passage, which was the unfinished part of Gandhi's experiment?
View Solution
Read the passage and answer the question.

Passage (extract): In the political struggle, the fight was against a foreign power and all one could do was either join it or wish it success and give it his/her moral support. Experience shows that man values his possessions even more than his life because in the former he sees the means for perpetuation and survival of his descendants even after his body is reduced to ashes. We have seen, in our time, attempts to achieve a kind of egalitarian society and the picture of it after it was achieved. But this was done, by and large, through the use of physical force. This enforced egalitarianism contains, in its bosom, the seed of its own destruction. The root cause of class conflict is possessiveness or the acquisitive instinct.

Which of the following statements is 'not true' in the context of the passage?
View Solution