CBDT simplifies tax assessment procedure for Startup's
The CBDT vide notification dtd. 10th August 2019 has simplified the procedure of tax assessment for startup’s. Here’s a brief :
1. Incase of startup companies recognized by DPIIT which have filed Form No.2 and are selected for “limited scrutiny” for a single issue of applicability of s. 56(2)(viib), the contention of the taxpayer will be summarily accepted.
2. Incase of startup companies recognized by DPIIT which have filed Form No. 2 and are selected for a “complete scrutiny” i.e for multiple issues including the issue of s. 56(2)(viib), this issue shall not be pursued during the assessment proceedings and the Assessing Officer shall carry out inquiries on other issues only after obtaining approval of supervisory authority.
3. Incase of Startup Companies recognized by DPIIT, which have not filed Form 2 but are selected for scrutiny, the Assessing Officer shall carry out inquiries after obtaining approval of the supervisory authorities.