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.