Angel tax in India refers to a tax imposed on startups when they receive an investment from an angel investor. This tax has been a topic of discussion, considering its impact on burgeoning businesses. Introduced to curb money laundering, it often affects genuine investment activities. With certain exemptions and criteria for startups, understanding the workings and nuances of this tax is crucial for entrepreneurs. This detailed overview illuminates the essentials of angel tax and how it influences the startup ecosystem in India.