#ShutdownIndia: Why India’s startup industry is angry with the Modi government
12 Feb 2019 2:30 AM GMT
Their concerns follow a series of incidents, including the slapping of tax notices on startups and freezing of their bank accounts.
- India’s startup community is up in arms against the Narendra Modi government.
- The entrepreneurs believe these actions are tied to the contentious angel tax , though the government has squarely denied this.
- More than 70% respondents in a recent LocalCircles survey said they had received at least one angel tax notice, while almost 30% said they had received three or more.
- In many cases, the startups have been slapped with hefty penalties for late payment, which sometimes cumulatively exceeds the entire amount raised by the firm.
- On February 9, the Central Board of Direct Taxes said the recoveries from TravelKhana were not made on account of angel tax but due to unexplained cash credit.
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