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- The Central Board of Direct Taxes (CBDT) has constituted a dedicated start up cell for addressing the specific problems related to Start-ups.
- The start up cell will be a five-member board which will be headed by the member (Income Tax and Computerisation) of the board.
- The cell will work towards redressal of grievances and mitigate tax-related issues in case of startup entities with respect to administration of Income-tax Act,1961.
- Recently,the finance minister has also announced that angel tax will not be applicable on startups that are registered with the Department for Promotion of Industry and Internal Trade(DPIIT).
- Angel Tax is a 30% tax that is levied on the funding received by startups from an Angel investor.However,this tax is levied when startups receive angel funding at a valuation higher than its ‘fair market value’.It is counted as income to the company and is taxed.
