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

  • Income Tax

If assessee fails to explain source of purchases, estimating profit rate contrary to Section 69C

When assessee failed to explain source of purchases expenditure, estimating profit rate was contrary to provision of Section 69C which…

13 hours ago
  • Income Tax

Income Tax Department not trusted even upon its lawyers – SC slams ITD for delay

Income Tax Department not trusted even upon its lawyers – SC slams ITD on adopting a long process resulting delay…

15 hours ago
  • GST

Goods loaded in two trucks with one e-way bill stating both truck numbers – No evasion

When goods are loaded in two trucks with one e-way bill specifically mentioning both truck numbers, no intention to evade…

2 days ago
  • Labour Laws

GOI makes four new Labour Codes  effective from 21st November 2025

GOI makes four new Labour Codes  effective from 21st November 2025 Government of India has announced that the four Labour…

2 days ago
  • EPFO

Provident fund dues have first charge over claim of bank under SARFAESI Act – SC

Provident fund dues definitely have a first charge over claim of bank under SARFAESI Act – Supreme Court In a…

2 days ago
  • Income Tax

CBDT notifies the Capital Gains Accounts (Second Amendment) Scheme, 2025

CBDT notifies the Capital Gains Accounts (Second Amendment) Scheme, 2025 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT…

3 days ago