Government

DIPP takes up matter of Income Tax Notice to Angel Investors / Start-ups with DoR

Press Information Bureau
Government of India

New Delhi, December 19th 2018

DIPP Clarification on IT Notice to Angel Investors / Start-ups

The Department of Industrial Policy & Promotion(DIPP) has taken notice of the news reports regarding issue of notices by Income Tax authorities to Angel Investors/Start-ups.

DIPP in consultation with the Department of Revenue (DoR) has put in place a mechanism since April 2018 to grant exemption from the provisions of Section 56(2) (vii b) of the Income Tax Act to genuine investors in recognised start-ups.

DIPP has again taken up this matter of issue of IT notices with the DoR so that there is no harassment of Angel Investors or Start-ups. Government is committed to protecting bona fide investments into startups.

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