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Recoveries from Travel Khana not angel tax: CBDT

CBDT stated that neither the assessee nor its Director submitted any certificate from DIPP to indicate its status of being a startup.

ET Bureau|
Feb 09, 2019, 07.09 AM IST
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Taxes getty
The apex authority for direct taxes refuted reports cited in certain section of the media that Rs 36 lakh recovered from Travel Khana were as a part of recovery of outstanding demand on account of angel tax.
The CBDT on Friday issued a statement clarifying that the recoveries made from a startup Travel Khana were made on account of unexplained cash credits and not angel tax. The apex authority for direct taxes refuted reports cited in certain section of the media that Rs 36 lakh recovered from Travel Khana were as a part of recovery of outstanding demand on account of angel tax.

CBDT clarified the recoveries were made under section 68 of the Income-Tax Act, 1961 and not under Section 56(2)(viib) on account of premium on shares. Section 56(2) provides that the amount raised by a startup in excess of its fair market value would be deemed income from other sources and taxed at 30%.

In its statement, CBDT also stated that neither the assessee nor its director submitted any certificate from DIPP to indicate its status of being a startup.
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