Economy

Startups Not To Be Approached Without Confirmation from AT

A circular was issued by the Central Board of Direct Taxes (CBDT) reiterating solutions on the so-called angel tax which have been impacting startups for quite a while.

The circular stated that income tax demand concerning the additions made under Section 56 (2)(vii b) would not be attended to by the authorities. It was further added that the taxmen should in no way communicate directly with the startup entities regarding the outstanding income tax demand.

Also Read: FinBlue, a Centre of Excellence, to Mentor FinTech Startups

Startups, from now on, will be approached for outstanding tax demand by taxmen only after the appellate tribunal approves the demand.

The CBDT, in a statement, announced that all circulars/clarification issued on the matter had been consolidated to ensure compliance of the startups.

Addressing issues concerning the pending assessments, CBDT added that a deadline had been set by the board for the completion of the pending procedures. While the deadline for cases with limited scrutiny concerning Section 52 (2) (vii b) has been set on 30 September 2019, the board wishes to dispose of all the remaining cases by 31 October 2019.

Share

Recent Posts

Mutual Funds: SIP Inflows Breach Rs 19,000-Crore Mark for the First Time in February ’24

The systematic investment plan (SIP) contribution in February 2024 has crossed a new milestone. The monthly contribution tipped at Rs…

10 months ago

Income-Tax Return: A Brief Note on Annual Information Statement (AIS)

The Income-Tax (I-T) Department has directed taxpayers to access the Annual Information Statement (AIS) via the e-filing official portal and…

10 months ago

Mutual Funds: All About SIP and Market Fluctuations

Considering the vagaries of the stock market, investors often ponder over reevaluating their strategies. Whether to continue to remain invested…

10 months ago

Income-Tax Saving Through Strategic Life Insurance Planning

Financial planning is beyond just investing wisely to save on taxes; it's also related to protecting oneself and one's loved…

10 months ago

Income-Tax Return: Here’s a Note on Tax-Saving Avenues

A salaried individual earning up to Rs 5-15 lakh as net salary on an annual basis must first take stock…

10 months ago

A Quick Take on Equity-Linked Savings Scheme

Equity-linked savings schemes (ELSS), also referred to as tax-saving schemes, are equity funds that invest a significant portion of their…

10 months ago