Income Tax

Income Tax on Start Ups-No coercive measures to recover outstanding demand – CBDT

Determination of fair market value of unquoted equity shares of ‘Start Up’ companies under section 56(2)(viib) of the  Income-tax  Act,  1961 read  with Rule 11UA(2) of Income-tax Rules, 1962 -reg.

CBDT vide instruction dated 06.02.2018 instructed that no coercive measures to recover the  outstanding demand would be taken in case of ‘Start Up’,  if  additions  have  been  made  by  the Assessing Officer under section 56(2)(viib) of the Income-tax Act, 1961 after modifying / rejecting the valuation so furnished under Rule 11UA(2) of the Income ­ tax Rules, 1962.

Recently, the Department of Industrial Policy & Promotion (DIPP) had taken up the matter of Income Tax Notice to Angel Investors / Start-ups with Department of Revenue.

Today, the CBDT has issued another Instruction addressed to all Principal Chief Commissioners of Income-tax whereby it has been stated that the Board had received Representations on similar lines have again.

As per the instruction, the matter is under consideration of the Board and no coercive measures to recover the outstanding demand should be taken in  the matter till further instructions in this regard.

Share

Recent Posts

  • Empanelment

FDCM invites application for empanelment of practising CAs/ Chartered Accountant Firms

Invitation For Empanelment Of Practising Chartered Accountants / Chartered Accountant Firms Forest Development Corporation of Maharashtra Limited (FDCM Limited), Nagpur,…

3 days ago
  • Empanelment

PGRI invites application for CAs for empanelment for Circulation Verification work

Press Registrar General of India (PGRI) invites application for empanelment of Chartered Accountants. The Press Registrar General of India manages…

3 days ago
  • Income Tax

CBDT notifies revised Form for registration as valuer & authorised income tax practitioner

CBDT notifies revised Form No. 169 for making application for registration as a valuer under section 514 and authorised income…

3 days ago
  • Income Tax

Curtailing time to file reply to notice u/s 148A(b) from 30 days prejudiced assessee’s right – HC

Curtailing time to file reply to notice u/s 148A(b) from statutorily available 30 days to 15 days seriously prejudiced assessee’s…

4 days ago
  • Income Tax

For registration u/s 12AB, applicability of proviso to section 2(15) can’t be adjudicated

At the stage of registration u/s 12AB, the CIT(E) not empowered to adjudicate applicability of provisio to section 2(15) of…

5 days ago
  • Income Tax

Flower bed area not included in “built up area” to calculate eligible limit u/s 80IB(10)

Flower bed area could not be included in the definition of “built up area” to calculate eligible limit of 1000…

6 days ago