Government to set up panel to look into tax issues faced by start-ups

• The Union Govt has made the decision to set up a professional committee to seem into all the taxation concerns currently being faced by startups and angel buyers.

• The facts were shared by the Central Board of Immediate Taxes (CBDT) on December 20, 2018.

• The conclusion was taken at a high-stage conference of Section of Profits Secretary Ajay Bhushan Pandey, Office of Industrial Policy and Advertising (DIPP) Secretary Ramesh Abhishek, and Central Board of Immediate Taxes (CBDT) Chairman Sushil Chandra.

Important Highlights

• The CBDT shared that no coercive motion or steps to get better the requires of done evaluation beneath profits tax would be taken from this kind of companies.

• It was made the decision that the challenge of recognition of the startups which includes the situation of high quality amongst others will be made a decision on the foundation of recommendations of a committee comprising eminent gurus drawn from institutions like IITs, IIMs.

• The committee, which will be established up by the DIPP, will primarily look into the grant of tax exemptions and other related issues.

• It will make recommendations on personal instances of recognised startups.

History

• The selection to set up the pro panel was taken following various startups elevated concerns on the taxation of angel cash beneath Area 56 of the Income Tax Act, which offers for taxation of resources gained by an entity.

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Mains Paper 2: Governance

Prelims level: Tax issues faced by start-ups

Mains level: Read the story

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