DPIITregistered startups exempt from angel tax

first_imgNew Delhi: The government on Friday exempted all startups that are registered with the DPIIT from the so-called ‘angel tax’, which will help resolve difficulties faced by the fledgling businesses and their investors. “To mitigate genuine difficulties of startups and their investors, it has been decided that Section 56(2)(viib) of the IT Act shall not be applicable to a startup registered under DPIIT,” Finance Minister Nirmala Sitharaman told reporters here. Also Read – Thermal coal import may surpass 200 MT this fiscalShe added that while the said section will continue to be part of the Income Tax Act, it will not be applicable to the startups registered with the Department for Promotion of Industry and Internal Trade (DPIIT). Besides, a dedicated cell, headed by a member of the Central Board for Direct Taxes (CBDT), will be set up to address concerns faced by startups. “After this, if there is a difficulty, it has been decided to set up a dedicated cell under a member of the CBDT. Any startup that has an issue can approach the cell for quick resolution of the problems,” she said. Multiple startup founders had claimed that they have received notices under Section 56(2) (viib) of the Income Tax Act to pay taxes on angel funds raised by them.last_img read more

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