The Central Board of Direct Taxation (CBDT) on Thursday clarified that no coercive action would be taken against start-ups and angel investors.
"No coercive action and measures to recover the demands of completed assessment under Income Tax would be taken against start-ups and angel investors," said a statement issued by the CBDT.
This was decided after a high-level meeting of Revenue Secretary Ajay Bhushan Pandey, Secretary DIPP Ramesh Abhishek, and CBDT chairman Sushil Chandra.
"With reference to certain news items regarding the difficulties being faced by some industrialists, it is clarified that CBDT is committed to the promotion of start-ups in India," stated the statement.
"CBDT recognises that the start-ups are going to bring a lot of innovation to the country and, therefore, have to be supported in every possible manner," an official statement said on Thursday.
The meeting decided that the issue of recognition of these start-ups including the issue of premium will be decided on the basis of recommendations of a committee of eminent experts drawn from institutions like IIT, IIM, which will soon be set up by the DIPP on the grant of tax exemptions and other connected matters.
"The committee of experts will make a recommendation on the individual case of recognised start-ups. In this regard, a notification by DIPP will be issued shortly," the statement added.
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