Taxation Issues faced by Startups: Inputs Sought
Many of you know how LocalCircles had worked with the Government in 2019 on resolution of angel tax issues under Section 56 (2)(viib) of the Income Tax act.
Once again, the Government has reached out to LocalCircles to find out about issues startups are experiencing under Section 56 (2)viib, Section 68 or 80-IAC exemption. If you are facing these issues, kindly share the issues faced. We will be aggregating and escalating to the Government for consideration.
We look forward to your inputs! more
Govt treats startups/small enterprises on same basis for statutory compliance with large conglomerates, which diverts attention from organization building to satisfying insensitive bureaucrats spending lot of money on CAs and other intermediaries. They are satisfied as soon as they collect their pound of flesh by way of taxes and are least interested to help MSME/Startup. more
Our startup has case pending for year 15-16. We have angel tax demand of INR 3 crore(including interest over years) on funding we raised from a well known big startup under section 56. At that time we had parked our idle funds in debt funds(So cannot apply exemption). Waiting from 2 yrs now for CIT A hearing and the demand keeps increasing with interest. Each year our IT return gets adjusted against the demand. It is pure harassment to do startup in India! more
Husbands startup still has 2019 case pending. money was raised in 16-17. more
I think only section 56 was addressed last time. No action on section 68. A friend has a pending case under appeals more
It should exempt the startup having a threshold limit based on turnover/Fixed assets of the Company which will limit the shell companies taking this route more