Scary. Tells you about what a state drunk on its power can do; no wonder India is so big on 'digital transactions' (pushed, interestingly, by the likes of USAID).
A bigger issue which is still applicable today is that long term capital gains tax on startups and other unlisted companies is still 28.5%, while for listed stocks it is 10%. [2]
There are some exemptions announced today for foreign investments until 2024 with a lock-in period of 3 years. [3]
[1] https://yourstory.com/2019/08/angel-tax-startups-angel-inves...
[2] https://www.business-standard.com/article/companies/higher-l...
[3] https://www.livemint.com/budget/news/budget-2020-full-text-o...