The CBDT (Central Board of Direct Taxes) chief said on Saturday, that the country’s startup community should now not worry about taxmen and concentrate on their business as concerns related to ‘angel tax’ have been sorted out.
CBDT Chairman PC Mody said all “legacy issues” related to startups would be resolved through a consultative process and under the strict supervision of senior officers of the tax authority.
In her maiden Budget speech on Friday, Union Finance Minister Nirmala Sitharaman proposed a slew of measures to resolve problems being faced by startups with regard to their initial funding, angel tax, their certification, and verification of investors.
The CBDT boss said, “I am very happy to say that all issues which were there with the DIPP… we have had extensive deliberations between both the departments and we have resolved all issues related to startups.”
The Department of Industrial Policy and Promotion (DIPP) is now called Department for Promotion of Industry and Internal Trade (DPIIT). The DPIIT, under the commerce and industry ministry, deals with foreign direct investment and issues related to startups.
“The issues resolved are with regard to the definition of startups, with regard to the issue of valuation of shares, and with regard to sources of funds,” Mody said.
“Now, I think everything has been sorted out and there should not be any cause for concern for startups,” he added.
“As the head of the tax family, I can definitely assure startups that there would not be any occasion for them to agitate or have any misgivings. They can just concentrate on doing their business,” he added.
The CBDT is the policy-making body for the Income-Tax Department.
“So, when there is involvement of senior officers and there is more of a consultative process, I do not anticipate that there would be any issue left that would trouble or agitate startups,” the CBDT chief added.
Sitharaman had stated that it would be ensured that no inquiry or verification in such cases be carried out by the assessing officer without approval of the supervisory officer.
Several startups have been complaining and making representations to the government for about a year with regard to receiving I-T notices. They claimed it was getting difficult for them to operate when the taxman was breathing down their neck.
The report has been taken from PTI, pubished by yourstory.