startups

Handle Tax Issues of Startups with Utmost Care: CBDT to I-T Dept

0

Income Tax related issues of startups should be handled with “utmost care” and a final action taken report on their grievances should be submitted within three working days, the CBDT told the taxman on Monday.

It has also asked the regional heads of the Income Tax Department to constitute a startup cell at their offices.

The Central Board of Direct Taxes (CBDT), which frames policy for the tax department, issued an order on Monday stating some fresh directions for handling grievances of startups.

“…the issue relating to startups are to be handled with utmost care. All the officers in your charge must be sensitised to handle such issues accordingly,” the order sent to all regional chiefs of the I-T Department said. PTI has accessed the order.

It also issued directions on handling of grievances of startups:

In case of any grievance, the preliminary action taken report is to be submitted to this office (CBDT) by the next day, that is within one working day of calling of the report by this office, the order said.

“The final ATR (action taken report) in this regard is to be submitted within three working days of calling of the report by this office,” it stated.

On August 30, the CBDT had notified creation of a five-member special cell to address grievances of startups with relation to angel tax and other tax-related issues.

The cell is headed by Member (Tax Payer Services and Systems) of the CBDT.

“Startup entities can approach the cell for speedy resolution of their grievances. This initiative is the latest among the recent initiatives taken by the CBDT to further ease the compliance issues pertaining to startups,” a CBDT spokesperson had said while describing the role of the new unit.

RELATED READING  Relief for Startups: CBDT Lays out Procedure for Pending Angel Tax Assessment Cases

Finance Minister Nirmala Sitharaman had, during a press conference last month, announced creation of such a cell in the CBDT and had declared exempting startups from the so-called angel tax.

“To mitigate genuine difficulties of startups and their investors, it has been decided that section 56(2)(vii (b)) of the Income-Tax Act shall not be applicable to a startup registered with DPIIT,” she had said, adding that a startup having any income tax issue can approach the cell for quick resolution of the same. PTI NES

Like this content? Sign up for our daily newsletter to get latest updates.

An Indian-origin Entrepreneur’s Start-up is Leading London FinTech Boom

Previous article

Only 32% Educational Institutions in Asia-Pacific taken Steps for AI Learning

Next article

Comments

Comments

This site uses Akismet to reduce spam. Learn how your comment data is processed.