Start-ups are heaving a sigh of relief as the Finance Minister announced measures to do away with the long pending contentious issue of Angel Tax, which many of them had to cough up for raising Angel funding under Section 56 of the Income Tax Act.
Also, special administrative arrangements will be made by the Central Board of Direct Taxes for pending assessments of start-ups and redressal of their grievances. Start-ups have been assured that no inquiry or verification in such cases can be carried out by the Assessing Officer without obtaining approval of his supervisory officer. This provision will do away with much of the angst among start-ups who were subjected to aggressive questioning by the Income Tax department.
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A TV channel exclusively for start-ups under the Doordarshan boutique will be designed and executed by start-ups themselves and will also serve as a platform for promoting them, discussing issues affecting their growth, match making with VCs and for funding and tax planning, came as a pleasant surprise to many. Although it remains to be seen how it will be executed on the ground.
Source: The Hindu BusinessLine
