Stop harassing startups
Many income-tax officers are continuing to misuse Section 56(2) viii(b), an “anti-abuse” clause and demanding that investments at a premium be “explained” to the satisfaction of the taxman or they will be treated as income.
The Govt urgently need to devise a way to identify illegitmate investments versus harassing genuine startups. Most startups dont have where with all to put up with the harassment. They will just shut down and those with money will quietly move abroad and the loss will be hours.
The startups that are working to provide low cost healthcare, low cost air purifiers or recycle left over food and many others will become singaport mauritious and silicon valley companies soon. more