Economy

Several early-stage startups get tax notices on angel funding, says report

Updated : December 19, 2018 04:41 PM IST

The taxes along with penalty amount is near 50 percent of the funds raised, the report said.

The angel tax issue comes despite the government assuring a resolution to the problem.

Several early-stage startups get tax notices on angel funding, says report

Several early-stage startups have received notices from the tax department over the past few weeks to clear taxes on the angel funding raised by them, reported The Times of India.

The taxes along with penalty amount is near 50 percent of the funds raised, the report said.

The angel tax issue comes despite the government assuring a resolution to the problem. In February, the Central Board of Direct Taxation (CBDT) had said that "no coercive measure" would be taken to recover outstanding demands, the ToI report added.

But the letters are once again putting enormous pressure on startups, which typically don't have resources or time to follow them up with tax authorities, said the report.

Some founders of early-stage companies are banding together to meet the secretary of the department of industrial policy and promotion (DIPP), Ramesh Abhishek, next week to make their case, the report said.

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