Angel tax: CBDT directs officials not to take coercive action against startups
14 March 2019 12:43 AM GMT
Startups will have wait for some more time before any concrete implementation measures are taken by CBDT and DPIIT as follow up to the relief measures announced by the government to deal with angel tax issue.
- Startups directly impacted by Angel Tax can look forward for further relief as the Central Board of Direct Taxes (CBDT) has directed its officials not to take any coercive action against firms who have already received notices.
- In a written communication sent to Chief Commissioners of Income Tax (CCIT) in various zones yesterday, the CBDT said, “I am directed to request you to kindly instruct the concerned authorities in your zone to identify cases pertaining to them and to ensure that no coercive action is taken in these cases.
- I am further directed to request you to kindly ensure that appeals pending in these cases, if any, are disposed of on priority.”The development comes soon after the government recently passed a fresh directive where it exempted startups from the ambit of Angel Tax up to certain limit along with other reform measures and these come with retrospective effect.
- “We have shared the same with Akhilesh Ranjan, Member CBDT, yesterday.”Even after the government notified new regulations to provide startups relief from Angel Tax, there has not been much movement on the ground for various reasons.
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