Start-ups, get relaxed of Angel Taxation..! CBDT approves exemption to 120 of the total concerns..!

NewsBharati    21-Mar-2019
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New Delhi, March 21: Following a month after 127 start-ups got registered with Department for Promotion of Industry and Internal Trade (DPIIT) having applied for angel tax exemption, 120 of them have been granted exemption from the angel taxes, under the Income Tax Act.
 
 
DPIIT had issued notification a month ago, pertaining to the number of years since incorporation, turnover, and amount raised by startups up to Rs 25 crore in angel funding to apply for the exemption. Meanwhile, with respect to the issue related to lack of seamless sharing of start-ups details received by DPIIT to CBDT, there is also an assurance of a digital information exchange.
“CBDT has delivered as promised. The revised acknowledgment emails have been sent by CBDT to around 120 startups. This meets the expectation of the startup community,” said Sachin Taparia of LocalCircles involved into social for communities, governance and urban daily life.
“CBDT and DPIIT have given us the assurance that soon they will have an integration for digital information exchange that would exempted start-ups will be identified in the CBDT system. This will ensure that there is no scrutiny notice generated against these start-ups in a share premium event. CBDT currently manually extract startup information shared in PDF form by DPIIT,” he added further.
DPIIT doesn’t have a digital signature infrastructure yet and hence the details are shared in the PDF form. It will take around a month’s time to solve this, Taparia said. The email for angel tax exemption follows the acknowledgement email sent by CBDT to 92 startups on March 15 that their Form-2 have been accepted by DPIIT.