New Delhi, April 8: Referring to novel income tax return frames introduced by the IT department last week, the start-up industry in India is all set to get relieved of the excess details and disclosures related to revenue and documentation aligned.
The reliefs include comfort from notices for angel investors with the government mandating disclosure of holdings in unlisted companies in tax returns. This data will be matched with filings of startups, which have been asked to disclose the list of investors along with some of their details.
“The moves initiated through the tax return forms come after the revenue department got down to clearing the clutter on the issue that had been bothering several investors in start-ups”, read the statement.
Boosting the start-up industry all over, the Finance Ministry and the Department for Promotion of Industry and Internal trade further allows more investors to invest in start-ups without being subjected to questioning in future. “By this, the investors will get no notices from tax authorities for acquiring shares at a hefty premium in companies”, the official in the tax department said.
“This is the next step in making life simpler for start-ups. With the two sets of data in their possession, tax authorities need not approach investors with notices. People may not be willing to disclose their holdings in these companies and these companies too will be monitored for the shareholders that they have”, he added.
“The new filing mechanism for start-ups was part of the government’s strategy to ensure faceless assessment while trying to ensure that there was not undue scrutiny of honest taxpayers. The government has meanwhile asked some of the businessmen to disclose the details of the outward supplies made under GST against the GST numbers that they have”, added the statement.