Giving a relief to startups, the finance ministry has simplified the angel-tax assessment process under which any action would be taken against such entities only after approval of a supervisory officer.
The Central Board of Direct Taxes (CBDT), in a circular, said that no verification will be done by an assessing officer if a startup has been recognised by the
Department for Promotion of Industry and Internal Trade (DPIIT) and the case is selected under limited scrutiny. In cases where scrutiny assessments of startup entities are pending, the CBDT has decided that the contention of the assessee will be summarily accepted whose cases are under ‘limited scrutiny’ for those entities recognised by DPIIT.