Does angel tax still apply when I raise a seed round?

Angel tax (the old Section 56(2)(viib) charge on share premiums above a “fair” value) has been abolished for shares issued from 1 April 2024. Resident and non-resident investments into Indian companies are no longer hit by that specific provision.

You still need a clean valuation for FEMA (if any non-resident is on the cap table), for income-tax documentation, and for your own board. Share-subscription agreements, PAS-3 filings, and bank receipt trails remain mandatory.

Treat “angel tax is gone” as “one famous headache is gone,” not “fundraising has no tax paperwork.”