CBDT issues clarifications on ease of compliances for the start-ups entities

Central Board of Direct Taxes (CBDT) has issued Circular No. 22/2019 to provide clarifications on ease of compliances for Start-ups entities.

Key points of the Circular are:

  • CBIC has provided simplified procedure for pending assessment case of start-ups recognized by Department for Promotion of Industry and Internal Trade (DPIIT).
  • The time limit for pending assessment in case of start ups has been specified. All cases involving “limited scrutiny” were to be completed preferably by 30th September, 2019 and other cases of Start-
  • ups were to be disposed off on priority, preferably by 31st October, 2019.
  • CBIC has clarified that provisions of Section 56(2)(viib) of the Income Tax Act, 1961 would also not be applicable in respect of assessment made before 19th February, 2019 if a recognized Start-up had filed declaration in Form No. 2.
  • Outstanding demands relating to additions made under Section 56(2)(viib) of the Income Tax Act, 1961 would not be pursued and no communication in respect of outstanding demand would be made with the Start-up entity and also other Income tax demand of the Start-ups would not be pursued unless the demand was confirmed by ITAT.
  • A Start-up Cell has been constituted to redress grievances and to address various tax related issues in the cases of Start-ups. Grievances can also be filed online at “startupcell.cbdt@gov.in”.

For further details please refer the attached document.

Source: Central Board of Direct Taxes

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