After what looks like several long and tough months, startups subsequently were given relief from the dreaded Angel Tax. According to three startup founders, startups that had orders and had carried out for tax exemption with the Central Board of Direct Taxes (CBDT),

have now acquired a proper mail from the  Department for Promotion of Industry and Internal Trade (DPIIT), in advance called Department for Industrial Policy and Promotion (DIPP), beneath the Ministry of Commerce, that they’re exempted from Angel Tax.


After several incidents where the CBDT had used coercive measures, and cases of Travel Khanna got here to light, it directed its officials no longer to take any coercive movement against firms who’ve already received notices.

It had also asked them to expedite all cases wherein startups have filed appeals, on a priority basis.

In a written verbal exchange sent to Chief Commissioners of Income Tax (CCIT) in various zones, the CBDT had said,

“I am directed to request you to kindly train the worried government in your zone to discover instances referring to them and to make sure that no coercive action is taken in those cases.

I am in addition directed to request you to kindly make certain that appeals pending in these instances, if any, are disposed of on priority.”

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