Union Budget 2019: Will FM Piyush Goyal ease Angel tax pain for startups?
India Union Budget 2019: Considering that Startup India is one of the flagship initiatives of the Government, it becomes incumbent on the Government to take suitable and time-bound steps to ensure that genuine startups and their angel investors are spared from the severe consequences of this Angel tax controversy.
- The Government should focus on the transparent and speedy implementation of the recently issued guidelines.
- (ANI) By Prasad K.S., Vijai Jayaram and Rajiv Ramesh Union Budget 2019: Insertion of ‘section 56(2)(viib)’ in the Income-tax Act, 1961 (the Act) was made vide the Finance Act, 2012.
- In December 2018, the Central Board of Direct Taxes (CBDT) issued an instruction (F No 173/14/2018-ITA-I) dated December 24, 2018, wherein the tax department was instructed not to take any coercive action to recover outstanding demand from startups (Angel tax related).
- The tax department should ensure that no coercive measures are taken on genuine startups and to their angel investors.