The Central Board of Direct Taxes (CBDT) has started sending acknowledgement emails to the startups who’ve filed Form 2 of the Section 56 Exemption Declaration certificates. Startup stakeholders welcomed it as a ‘cursory step’, but, criticised as that “would not suffice something towards availing exemption from the angel tax .”
The CBDT sent the acknowledgement letters to startups on March 15 (Friday). About 127-128 startups had filed for the exemption certificate, of which ninety two startups have acquired the acknowledgement letter, to date, consistent with Sachin Taparia, founding father of an online residents’ platform, Local Circles.
“For 30-35 atypical startups who’re yet to get hold of an acknowledgement letter, their utility has not been processed for reasons like the letter-head not used for submitting the record, PAN range didn’t match with the CBDT records, etc,” Taparia introduced.
“This doesn’t mean that they’ve been exempted from the angel tax nor it suffices as proof that might stand before the evaluation officers or CID appeals. They want extra than just an acknowledgement regarding the proper notification,” said Taparia.
Startup stakeholders have additionally demanded that CBDT to enlist 127-128 startups, who’ve filed for the exemption certificates, in their machine so that when the proportion premium event takes place and notice gets generated, these startups won’t get a word below Section fifty six(2)(viib).
“If the attention receives generated, it goes to the evaluation officials and the one-liner electronic mail received’t do some thing,” Taparia asserted.
Reiterating on comparable strains, an early-degree undertaking capital fund 3One4 Capital’s founding Partner Siddarth Pai stated that the startups had been hoping that the final element to offer the exemption certification system might be expedited.
“As the time for the end of exams nears (tentatively, April 30), startups are under excessive pressure from the assessment officers to offer some submission, pronouncing that they are qualified startups and that the unique notification applies to them. If the delay comes from the authorities or CBDT aspect there received’t be a good deal that startups can do,” stated Pai.