{"id":218379,"date":"2019-08-19T17:16:51","date_gmt":"2019-08-19T11:46:51","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=218379"},"modified":"2019-08-20T11:09:59","modified_gmt":"2019-08-20T05:39:59","slug":"cbdt-simplifies-the-process-of-assessment-in-respect-of-startups","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/19\/cbdt-simplifies-the-process-of-assessment-in-respect-of-startups\/","title":{"rendered":"CBDT simplifies the process of assessment in respect of Startups"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong>The Finance Ministry has simplified the process of assessment in the case of Startup entities.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff0000;\">In cases where scrutiny assessments of Startup entities are pending, the CBDT has decided that:<\/span><\/p>\n<p style=\"text-align: justify;\">i) In case of Startup Companies recognized by DPIIT which have filed Form No. 2 and whose cases are under \u201climited scrutiny\u201d on the single issue of applicability of Section 56(2)(viib),the contention of the assessee will be summarily accepted.<\/p>\n<p style=\"text-align: justify;\">ii) In case of Startup Companies recognized by DPIIT which have filed Form No. 2 and whose cases have been selected under scrutiny to examine multiple issues including the issue of Section 56(2)(viib), this issue will not be pursued during the assessment proceedings and inquiry on other issues will be carried out by the Assessing Officer only after obtaining approval of the supervisory authority.<\/p>\n<p style=\"text-align: justify;\">iii) In case of Startup Companies recognized by the DPIIT, which have not filed Form No. 2, but have been selected for scrutiny, the inquiry in such cases also will be carried out by the Assessing Officer only after obtaining approval of the supervisory<br \/>\nauthorities.<\/p>\n<p style=\"text-align: justify;\">In addition to the above, the Central Government has further decided to relax Para-6 of the DPIIT Notification No.127 (E) dated 19.02.2019 and make it clear that this notification will also be applicable to Startup Companies where addition under Section<br \/>\n56(2)(viib) has been made and the assessee has been recognized by DPIIT and subsequently filed Form No. 2.<\/p>\n<hr \/>\n<p>[Press Release dt. 10-08-2019]<\/p>\n<p><strong>Central Board of Direct Taxes<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>Ministry of Finance<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Finance Ministry has simplified the process of assessment in the case of Startup entities. In cases where scrutiny assessments of Startup <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193,4711],"tags":[37136,37135,37137,37134],"class_list":["post-218379","post","type-post","status-publish","format-standard","hentry","category-legislationupdates","category-notifications","category-taxation","tag-limited-scrutiny","tag-simplification-of-process","tag-startup-companies","tag-startups"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CBDT simplifies the process of assessment in respect of Startups | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/19\/cbdt-simplifies-the-process-of-assessment-in-respect-of-startups\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CBDT simplifies the process of assessment in respect of Startups\" \/>\n<meta property=\"og:description\" content=\"The Finance Ministry has simplified the process of assessment in the case of Startup entities. In cases where scrutiny assessments of Startup\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/19\/cbdt-simplifies-the-process-of-assessment-in-respect-of-startups\/\" \/>\n<meta property=\"og:site_name\" content=\"SCC Times\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/scc.online\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-19T11:46:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-08-20T05:39:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/mof-647_022117042319.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1330\" \/>\n\t<meta property=\"og:image:height\" content=\"887\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Bhumika Indulia\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bhumika Indulia\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/19\/cbdt-simplifies-the-process-of-assessment-in-respect-of-startups\/\",\"url\":\"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/19\/cbdt-simplifies-the-process-of-assessment-in-respect-of-startups\/\",\"name\":\"CBDT simplifies the process of assessment in respect of Startups | SCC Times\",\"isPartOf\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/#website\"},\"datePublished\":\"2019-08-19T11:46:51+00:00\",\"dateModified\":\"2019-08-20T05:39:59+00:00\",\"author\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/919ec47cc1b871b362af05740398033a\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/19\/cbdt-simplifies-the-process-of-assessment-in-respect-of-startups\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/19\/cbdt-simplifies-the-process-of-assessment-in-respect-of-startups\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/19\/cbdt-simplifies-the-process-of-assessment-in-respect-of-startups\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.scconline.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"CBDT simplifies the process of assessment in respect of Startups\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#website\",\"url\":\"https:\/\/www.scconline.com\/blog\/\",\"name\":\"SCC Times\",\"description\":\"Bringing you the Best Analytical Legal News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.scconline.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/919ec47cc1b871b362af05740398033a\",\"name\":\"Bhumika Indulia\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/Me-150x150.jpg\",\"contentUrl\":\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/Me-150x150.jpg\",\"caption\":\"Bhumika Indulia\"},\"url\":\"https:\/\/www.scconline.com\/blog\/post\/author\/editor_1\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"CBDT simplifies the process of assessment in respect of Startups | SCC Times","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/19\/cbdt-simplifies-the-process-of-assessment-in-respect-of-startups\/","og_locale":"en_US","og_type":"article","og_title":"CBDT simplifies the process of assessment in respect of Startups","og_description":"The Finance Ministry has simplified the process of assessment in the case of Startup entities. 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Vide Circular No.22\/2019 dated 30-08-2019, CBDT has consolidated all the circulars\/clarifications issued on this subject for the ease of compliance of Start-up entities. The present circular inter alia highlights the following:- Simplification of\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":186124,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/02\/07\/cbdt-no-coercive-recovery-start-ups-addition-share-capital-valuation-issue\/","url_meta":{"origin":218379,"position":1},"title":"CBDT: No coercive recovery from Start Ups for addition on Share Capital Valuation issue","author":"Saba","date":"February 7, 2018","format":false,"excerpt":"Section 56(2)(viib) of the Income-tax Act, 1961 (Act) provides that where a closely held company issues its shares at a price which is more than its fair market value, the amount received in excess of fair market value will be charged to tax in the hands of the company as\u2026","rel":"","context":"In &quot;Taxation&quot;","block_context":{"text":"Taxation","link":"https:\/\/www.scconline.com\/blog\/post\/category\/taxation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":141811,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/07\/11\/income-tax-manual-scrutiny-criteria-for-financial-year-2017-2018-issued\/","url_meta":{"origin":218379,"position":2},"title":"Income Tax Manual Scrutiny Criteria for Financial Year 2017-2018 issued","author":"Saba","date":"July 11, 2017","format":false,"excerpt":"Guidelines for selection of cases for scrutiny during \u00a0Financial Year 2017-2018 1.\u00a0In supersession of earlier Instructions on the above subject, the Board hereby lays down the following procedure and criteria for compulsory manual selection of returns\/cases requiring scrutiny during the financial-year 2017-2018:- (i) Cases involving addition in an earlier assessment\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":188904,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/02\/14\/cbdt-notifies-important-procedural-aspects-conducting-e-assessment\/","url_meta":{"origin":218379,"position":3},"title":"CBDT notifies important procedural aspects while conducting e-assessment","author":"Saba","date":"February 14, 2018","format":false,"excerpt":"Sub-section (23C) of Section 2 of the Income-tax Act, 1961 (Act), applicable from 01.06.2016, provides that \u201chearing\u201d includes communication of data and documents through electronic mode. Accordingly to facilitate conduct of assessment proceedings electronically, vide letter dated 23.06.2017, in file of even number, Board had issued a revised format of\u2026","rel":"","context":"In &quot;Business News&quot;","block_context":{"text":"Business News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/business_news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6792,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/09\/30\/directions-given-to-the-cbdt-to-extend-the-last-date-for-e-filing-of-tax-returns-till-31-10-2015\/","url_meta":{"origin":218379,"position":4},"title":"Directions given to the CBDT to extend the last date for e-filing of tax returns till 31-10-2015","author":"Sucheta","date":"September 30, 2015","format":false,"excerpt":"Punjab and Haryana High Court: While deciding the present case challenging the press release by the Union of India dated 09-09-2015, whereby it was notified that the last date for e-filing of tax returns will not be extended beyond 30-09-2015 for the current assessment year for certain category of assessees\u2026","rel":"","context":"In &quot;High Courts&quot;","block_context":{"text":"High Courts","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/highcourts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":194938,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/04\/06\/cbdt-notifies-itr-forms-for-assessment-year-2018-19\/","url_meta":{"origin":218379,"position":5},"title":"CBDT notifies ITR Forms for Assessment Year 2018-19","author":"Saba","date":"April 6, 2018","format":false,"excerpt":"The Central Board of Direct Taxes (CBDT) has notified Income Tax Return Forms (ITR Forms) for Assessment Year 2018-19. For Assessment Year 2017-18, a one page simplified ITR Form-1 (Sahaj) was notified. This initiative benefited around 3 crore taxpayers, who have filed their return in this simplified Form. 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