{"id":12914,"date":"2019-02-09T12:55:38","date_gmt":"2019-02-09T07:25:38","guid":{"rendered":"http:\/\/itatonline.org\/info\/?p=12914"},"modified":"2019-02-09T12:55:38","modified_gmt":"2019-02-09T07:25:38","slug":"cbdt-press-release-on-angel-tax-terrorism-of-start-ups","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/cbdt-press-release-on-angel-tax-terrorism-of-start-ups\/","title":{"rendered":"CBDT Press Release On &#8216;Angel Tax Terrorism&#8217; Of Start-Ups"},"content":{"rendered":"<p>The CBDT has been criticized over alleged &#8216;tax terrorism&#8217; of two award-winning start-ups named &#8216;Travel Khana&#8217; and &#8216;Baby Go Go&#8217;. It is alleged that the AOs attached the bank account and withdrew funds, leaving the start-ups high and dry. It is claimed that nearly 2500 start-ups are in similar dire state over tax demands. The CBDT has issued a press release to clear the air and has claimed that all procedures were diligently followed by the AO and the start-ups are to blame for non-compliance<\/p>\n<blockquote class=\"twitter-tweet\" data-cards=\"hidden\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">CBDT on Rs36 lakh seized from startup Travel Khana:Additions were made u\/s 68 of I-T Act,1961 on account of unexplained cash credits&amp;not 56(2)(viib) on account of premium on shares as alleged(that it is violation of CBDT instructions regarding recovery of dues in Angel Tax cases) <a href=\"https:\/\/t.co\/ffER9tqy01\">pic.twitter.com\/ffER9tqy01<\/a><\/p>\n<p>&mdash; ANI (@ANI) <a href=\"https:\/\/twitter.com\/ANI\/status\/1093935918535270400?ref_src=twsrc%5Etfw\">February 8, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Startup ecosystem sent in shock as entrepreneurs continue to face the wrath of <a href=\"https:\/\/twitter.com\/IncomeTaxIndia?ref_src=twsrc%5Etfw\">@IncomeTaxIndia<\/a>. Rs 33 lk were withdrawn from the bank account of <a href=\"https:\/\/twitter.com\/Travelkhana?ref_src=twsrc%5Etfw\">@TravelKhana<\/a> as tax liability in <a href=\"https:\/\/twitter.com\/hashtag\/AngelTax?src=hash&amp;ref_src=twsrc%5Etfw\">#AngelTax<\/a> issue. <a href=\"https:\/\/twitter.com\/pushpinder?ref_src=twsrc%5Etfw\">@pushpinder<\/a> speaks to <a href=\"https:\/\/twitter.com\/dayamarahul?ref_src=twsrc%5Etfw\">@DayamaRahul<\/a> to share his concerns. Listen in! <a href=\"https:\/\/t.co\/VcqOw79XA1\">pic.twitter.com\/VcqOw79XA1<\/a><\/p>\n<p>&mdash; ET NOW (@ETNOWlive) <a href=\"https:\/\/twitter.com\/ETNOWlive\/status\/1093854808518348801?ref_src=twsrc%5Etfw\">February 8, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-cards=\"hidden\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Siddharth Ahluwalia, Co-founder,  <a href=\"https:\/\/twitter.com\/babygogo_in?ref_src=twsrc%5Etfw\">@babygogo_in<\/a> says got Rs 70 lk tax notice 2 mths ago; got a message yesterday saying Rs 70 lk debited from co\u2019s a\/cs by IT dept. Communicated angel investors\u2019 creds, pan cards etc to IT Dept when notice received; no intimation before a\/c debited <a href=\"https:\/\/t.co\/voHATzXvoI\">pic.twitter.com\/voHATzXvoI<\/a><\/p>\n<p>&mdash; CNBC-TV18 (@CNBCTV18Live) <a href=\"https:\/\/twitter.com\/CNBCTV18Live\/status\/1093865065265037318?ref_src=twsrc%5Etfw\">February 8, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">The IT department deducted on 6th Feb 2019 Rs 72 Lacs Angel Tax from our company bank account.(AddoDoc Technologies Pvt Ltd) <a href=\"https:\/\/twitter.com\/babygogo_in?ref_src=twsrc%5Etfw\">@babygogo_in<\/a> <br \/>Thankfully we didn&#39;t have much balance in it and the balance in account is now -Rs 72Lacs.<a href=\"https:\/\/twitter.com\/TVMohandasPai?ref_src=twsrc%5Etfw\">@TVMohandasPai<\/a> <a href=\"https:\/\/twitter.com\/amitranjan?ref_src=twsrc%5Etfw\">@amitranjan<\/a> <a href=\"https:\/\/twitter.com\/RajanAnandan?ref_src=twsrc%5Etfw\">@RajanAnandan<\/a> <a href=\"https:\/\/t.co\/9ssLear2Zc\">pic.twitter.com\/9ssLear2Zc<\/a><\/p>\n<p>&mdash; Siddhartha Ahluwalia (@siddharthaa7) <a href=\"https:\/\/twitter.com\/siddharthaa7\/status\/1093826393794740224?ref_src=twsrc%5Etfw\">February 8, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">We raised angel round of 1Cr n 2015 now <a href=\"https:\/\/twitter.com\/hashtag\/IncomeTax?src=hash&amp;ref_src=twsrc%5Etfw\">#IncomeTax<\/a> dept want us to pay 40Lakh from that as tax. <a href=\"https:\/\/twitter.com\/hashtag\/startupindia?src=hash&amp;ref_src=twsrc%5Etfw\">#startupindia<\/a> won&#39;t fly with these policies . <a href=\"https:\/\/twitter.com\/arunjaitley?ref_src=twsrc%5Etfw\">@arunjaitley<\/a> <a href=\"https:\/\/twitter.com\/republic?ref_src=twsrc%5Etfw\">@republic<\/a> <a href=\"https:\/\/twitter.com\/TOIStartups?ref_src=twsrc%5Etfw\">@TOIStartups<\/a> <a href=\"https:\/\/twitter.com\/SharmaShradha?ref_src=twsrc%5Etfw\">@SharmaShradha<\/a> <a href=\"https:\/\/twitter.com\/ShereenBhan?ref_src=twsrc%5Etfw\">@ShereenBhan<\/a> <a href=\"https:\/\/twitter.com\/_sachinbansal?ref_src=twsrc%5Etfw\">@_sachinbansal<\/a> <a href=\"https:\/\/twitter.com\/vijayshekhar?ref_src=twsrc%5Etfw\">@vijayshekhar<\/a><\/p>\n<p>&mdash; Sreejith Moolayil (@sreejithmoolayl) <a href=\"https:\/\/twitter.com\/sreejithmoolayl\/status\/948765270868447232?ref_src=twsrc%5Etfw\">January 4, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">How The Angel Tax Is Accelerating India\u2019s Descent Into A Digital Colony<br \/>Why does India discriminate against us,why does the CBDT hurt honest young taxpayers,why do they harass our future entrepreneurs!They are accelerating our descent into a Digital Colony <a href=\"https:\/\/t.co\/d8Aa9ykhuD\">https:\/\/t.co\/d8Aa9ykhuD<\/a><\/p>\n<p>&mdash; Mohandas Pai (@TVMohandasPai) <a href=\"https:\/\/twitter.com\/TVMohandasPai\/status\/1093743116920737792?ref_src=twsrc%5Etfw\">February 8, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">I am suspending all angel investing till the time <a href=\"https:\/\/twitter.com\/hashtag\/AngelTax?src=hash&amp;ref_src=twsrc%5Etfw\">#AngelTax<\/a> is abolished. <\/p>\n<p>I will offer my one hour everyday free to a startup that requires mentoring till March 31<\/p>\n<p>&mdash; Rajesh Sawhney (@rajeshsawhney) <a href=\"https:\/\/twitter.com\/rajeshsawhney\/status\/1093841656103620608?ref_src=twsrc%5Etfw\">February 8, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-cards=\"hidden\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Over 70% of India\u2019s startups are in tax trouble from angel investments <a href=\"https:\/\/t.co\/twgOeDErnU\">https:\/\/t.co\/twgOeDErnU<\/a><\/p>\n<p>&mdash; Quartz (@qz) <a href=\"https:\/\/twitter.com\/qz\/status\/1093264362909908992?ref_src=twsrc%5Etfw\">February 6, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Hey startup founders and investors &#8211; you need to do Singapore\/Delaware as a norm for Indian startups now. <br \/>The angel tax is now a lost cause &#8211; i don&#39;t see it getting fixed anytime until 2020 budget. <br \/>It&#39;s a spectacular time to be tapping into startup opportunities .. via SG\/USA<\/p>\n<p>&mdash; Sandeep Srinivasa (@sandeepssrin) <a href=\"https:\/\/twitter.com\/sandeepssrin\/status\/1093848659093946368?ref_src=twsrc%5Etfw\">February 8, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/CNBCTV18Exclusive?src=hash&amp;ref_src=twsrc%5Etfw\">#CNBCTV18Exclusive<\/a> | Govt may announce fresh measures with respect to start-ups, looks to hike exemption limit from \u20b925 cr of investment by an angel investor: Sources <\/p>\n<p>Alert: Govt exempts start-ups from tax if investor makes an investment up to \u20b925 cr <a href=\"https:\/\/t.co\/MBOOn31fqZ\">pic.twitter.com\/MBOOn31fqZ<\/a><\/p>\n<p>&mdash; CNBC-TV18 (@CNBCTV18Live) <a href=\"https:\/\/twitter.com\/CNBCTV18Live\/status\/1093745484454350848?ref_src=twsrc%5Etfw\">February 8, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>CBDT Press Release:<\/p>\n<blockquote class=\"twitter-tweet\" data-cards=\"hidden\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">CBDT issues clarification on the <a href=\"https:\/\/twitter.com\/Travelkhana?ref_src=twsrc%5Etfw\">@Travelkhana<\/a> case &#8211; says director failed to provide requested record of funds <a href=\"https:\/\/twitter.com\/CNBCTV18News?ref_src=twsrc%5Etfw\">@CNBCTV18News<\/a> <a href=\"https:\/\/twitter.com\/ShereenBhan?ref_src=twsrc%5Etfw\">@ShereenBhan<\/a> <a href=\"https:\/\/twitter.com\/amitranjan?ref_src=twsrc%5Etfw\">@amitranjan<\/a> <a href=\"https:\/\/twitter.com\/rajeshsawhney?ref_src=twsrc%5Etfw\">@rajeshsawhney<\/a> <a href=\"https:\/\/twitter.com\/IndianVCA?ref_src=twsrc%5Etfw\">@IndianVCA<\/a> <a href=\"https:\/\/twitter.com\/sreejithmoolayl?ref_src=twsrc%5Etfw\">@sreejithmoolayl<\/a> <a href=\"https:\/\/twitter.com\/Product_Nation?ref_src=twsrc%5Etfw\">@Product_Nation<\/a> <a href=\"https:\/\/twitter.com\/DIPPGOI?ref_src=twsrc%5Etfw\">@DIPPGOI<\/a> <a href=\"https:\/\/twitter.com\/TVMohandasPai?ref_src=twsrc%5Etfw\">@TVMohandasPai<\/a> <a href=\"https:\/\/twitter.com\/RajanAnandan?ref_src=twsrc%5Etfw\">@RajanAnandan<\/a> <a href=\"https:\/\/t.co\/c64W5Gvm42\">pic.twitter.com\/c64W5Gvm42<\/a><\/p>\n<p>&mdash; Young Turks (@CNBCYoungTurks) <a href=\"https:\/\/twitter.com\/CNBCYoungTurks\/status\/1093932623276244992?ref_src=twsrc%5Etfw\">February 8, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2> CBDT Press Release 08.02.2019 <\/h2>\n<h3> CBDT clarification <\/h3>\n<p>New Delhi: It has come to the notice of CBDT, through some media reports that Rs 36 lakh have been recovered from a start-up, namely, Travel Khana as part of recovery of outstanding demand on account of Angel Tax. <\/p>\n<p>It has been alleged that this was in violation of the <a href=\"https:\/\/itatonline.org\/info\/cbdt-bails-out-start-ups-angel-funds-from-tax-terrorism-of-aos\/\">CBDT instructions dt 24th December, 2018<\/a> pertaining to recovery of dues in Angel Tax cases. On ascertaining the facts it is seen that the additions in the case were made u\/s 68 of the Income-tax Act, 1961 on account of unexplained cash credits and not u\/s 56(2) (viib) on account of premium on shares, as has been alleged. <\/p>\n<p>During the assessment proceedings, the assessing officer requested for confirmation of the persons from whom deposits had been received. Wherever confirmations were submitted, the same were accepted by the assessing officer and no addition was made. <\/p>\n<p>However, where no confirmations were furnished by the assessee, the assessing officer made the addition after issuing proper show-cause notice and obtaining reply in the matter. Thus, the addition was made only when the taxpayer failed to substantiate the source of the deposit resulting in demand of Rs. 2.22 crore approximately.<\/p>\n<p>The assessee did not obtain any stay in respect of the demand raised. Had the stay been obtained, recovery proceedings would not have been instituted by the department. Since there was no stay against recovery and the demand had become due, the department recovered Rs. 36 lakh after attaching the bank accounts of the assesse. <\/p>\n<p>Thereafter, all the bank accounts were released. It may also be noted that neither the assessee nor its Director submitted any certificate from DIPP to indicate its status of being a startup, either during the assessment proceedings or thereafter, which is a mandatory requirement as per extant instructions in the matter. <\/p>\n<p>Had such a certificate been furnished, this situation would not have arisen. <\/p>\n<p>Thus, it is clear that the case of Travel Khana is not covered by the <a href=\"https:\/\/itatonline.org\/info\/cbdt-bails-out-start-ups-angel-funds-from-tax-terrorism-of-aos\/\">instruction issued by CBDT dated 24th December, 2018<\/a> prohibiting coercive measures for enforcing recovery of outstanding demand in Angel Tax cases as the addition was made under section 68 of the IT Act and not under section 56(2)(viib). Therefore, the action of the assessing officer of enforcing recovery of demand is not in violation of CBDT&#8217;s instructions. <\/p>\n<p>The benefit of doubt should and must be given to our entrepreneurs. However when after repeated reminders, records of funds received are not provided, the department is unfortunately left with no choice. <\/p>\n<p>Our agencies also have a duty to prevent and expose suspected evasion. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The CBDT has been criticized over alleged &#8216;tax terrorism&#8217; of two award-winning start-ups named &#8216;Travel Khana&#8217; and &#8216;Baby Go Go&#8217;. It is alleged that the AOs attached the bank account and withdrew funds, leaving the start-ups high and dry. It is claimed that nearly 2500 start-ups are in similar dire state over tax demands. The CBDT has issued a press release to clear the air and has claimed that all procedures were diligently followed by the AO and the start-ups are to blame for non-compliance<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/info\/cbdt-press-release-on-angel-tax-terrorism-of-start-ups\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1,7],"tags":[],"class_list":["post-12914","post","type-post","status-publish","format-standard","hentry","category-all-information","category-others"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/12914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/comments?post=12914"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/12914\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/media?parent=12914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/categories?post=12914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/tags?post=12914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}