Level-up start-up grievance redressal: CBDT to officials

TAX

The Central Board of Direct Taxes (CBDT) has directed its officials for address start-up grievances and addressing the related tax issues.

In August 2019, a startup cell was developed at the CBDT level for handling redressal of grievances of startups. In addition, the department also issued directions to all its Principal Chief Commissioner of Income Tax, and Principal Director General of Income Tax.

TAX

“It is brought to your kind notice that the issue relating to start-ups are to be handled with utmost care. All the officers in your charge must be sensitised to handle such issues accordingly,” said CBDT in its communique .

The Department has prescribed a particular time frame to its officials to handle the grievances of the startups. “In case of any grievance, the Preliminary Action Taken Report is to be submitted to the Board/ Cell by the next day that is within one working day of calling of report. Final Action Report in this regard is to be submitted within 3 working days of calling of report by this office,” the communique stated.

It further states that the respective principal Chief Commissioners of Income Tax or Chief Commissioners of Income Tax are likely to constitute a startup cell at the local level for addressal of such issues, and the Chief Commissioner of Income Tax concerned will remain responsible for all such grievances pertaining to their charge.

Addressing the concerns of the startup community, Finance Minister Nirmala Sitharaman had in August had given assurance to do away with Angel Tax for entrepreneurs and investors.

She said that the section 56(2) (b) of the Income Tax Act, 1961, dealing with the Angel Tax, will not be relevant to the start-ups registered with DPIIT (Department of Industrial Policy and Promotion). The controversial section was a matter of concern to startups. It was a problem for many indisputable young firms and investors.

"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.