City
Epaper

CBDT simplifies angel tax assessment process for start-ups

By ANI | Updated: August 10, 2019 23:45 IST

Giving relief to start-ups facing angel tax issue, the Ministry of Finance on Saturday simplified its assessment process under which action could be taken against such entities only after the approval of a supervisory officer.

Open in App

Giving relief to start-ups facing angel tax issue, the Ministry of Finance on Saturday simplified its assessment process under which action could be taken against such entities only after the approval of a supervisory officer.

In a circular, the Central Board of Direct Taxes (CBDT) said that no verification will be done by an assessing officer if a startup has been recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) and the case is selected under limited scrutiny.

In cases where scrutiny assessments of start-up entities are pending, the CBDT has decided that the contention of the assessee will summarily be accepted whose cases are under 'limited scrutiny' for those entities recognised by the DPIIT.

"In case of start-up compes recognised by the DPIIT which have filed Form No. 2 and whose cases have been selected under scrutiny to examine multiple issues including the issue of Section 56(2)(viib), this issue will not be pursued during the assessment proceedings and inquiry on other issues will be carried out by the assessing officer only after obtaining approval of the supervisory authority," the statement read.

Form 2 deals with the exemption of startups from income tax subject to certain criteria. If a start-up is not recognised by the DPIIT, then an inquiry would be carried out after the approval of a supervisory officer.

( With inputs from ANI )

Open in App

Related Stories

InternationalUnionised workers at 14 airports suspend strike, Incheon airport walkout continues

TechnologyUnionised workers at 14 airports suspend strike, Incheon airport walkout continues

EntertainmentJubin Nautiyal says Kailash is a ‘calling’: Celebrate life unattached

BusinessUnionised workers at 14 airports suspend strike, Incheon airport walkout continues

InternationalIDF confirms "implementation of first stage of Trump's plan to free the hostages"

National Realted Stories

NationalAllahabad HC to hear plea challenging demolition drive against encroachments in Sambhal

NationalPM Modi welcomes progress in Gaza hostage deal, praises Prez Trump’s peace efforts

NationalElection Commission to meet political parties in Patna today ahead of Bihar polls

NationalAmit Shah to visit Chhattisgarh’s Bastar today

NationalPM Modi to address Bihar’s youth today, unveil Rs 62,000 cr development package