CBDT constitutes special cell to address grievances of startups

The government now appears to be pretty much concern about startups in the country. After withdrawing angel tax provision last week for DPIIT registered startups, the Central Board of Direct Taxes (CBDT) has constituted special cell to resolve their problems.

A dedicated cell would be set up under a Member of CBDT for addressing the specific problems of startups, said CBDT in a notification.

The startup cell, including ex-officio members, will be responsible for addressing grievances and tax-related issues of startups.

Any startups can report their issues to a dedicated office at North block. The cell will also be accessible telephonically on 011- 23095479 /23093070 (F).

The development is the latest amongst the recent initiatives taken by CBDT to address the compliance issues of startups.

Last week, Finance Minister Nirmal Sitharaman had made the same announcements. She added that sections 56 2 (b) of the Income-tax Act shall not apply to a startup registered with DPIIT.

Soon after the announcements, startups have demanded official communication.

Having witnessed a long delay and been harassed over angel tax, startups have over the years continuously complained about IT officials harassments.

Hopefully, with the govt proactive action and constitution of a special cell, startups will be encouraged and thrive in India to boost its economy.