Budget 2019: Government working on administrative mechanism to resolve startups’ legacy tax issues, says CBDT chief

By: |
Updated: July 9, 2019 4:42:28 PM

Union Budget 2019: The CBDT chairman further said the Budget has also increased the threshold for launching a prosecution, which has been enhanced to Rs 10,000 from Rs 3,000 for ease of compliance of taxpayers.

Budget 2019, budget, startups,budget highlights, budget 2019 date, budget 2019 PDF, budget 2019 highlights, budget 2019 income tax, budget highlights 2019 indiaBudget 2019 India: The Budget also proposed a number of measures to resolve the problems being faced by startups with regard to their initial funding, called angel tax.

Budget 2019-20: Startups should not have any concern related to taxation and the government is putting in place an administrative mechanism to resolve the legacy issues, CBDT chief P C Mody said Tuesday. The Central Board of Direct Taxes (CBDT) chairman further said the Budget has also increased the threshold for launching prosecution, which has been enhanced to Rs 10,000 from Rs 3,000 for ease of compliance of taxpayers.

“Ease of tax compliance would be an integral part of ease of living… The ease of compliance also talks about threshold for prosecution. As you would notice, that limit has also been raised from Rs 3,000 to Rs 10,000. And, the compounding guidelines have been made liberal,” Mody said.

In the Budget 2019-20, Finance Minister Nirmala Sitharaman proposed to simplify the tax law to reduce genuine hardships being caused to taxpayers which include enhancing threshold of tax for launching prosecution for non-filing of returns and exempting appropriate class of persons from the anti-abuse provisions of Section 50CA and Section 56 of the Income Tax Act.

“This Budget, there is a clear cut direction to tone up the tax administration and to ensure that taxpayers get the correct environment to discharge their obligations honestly and correctly,” Mody said.

The Budget also proposed a number of measures to resolve the problems being faced by startups with regard to their initial funding, called angel tax, their certification and verification of investors.

Mody said that in future, there should not be any cause for friction or concern in the minds of startups. “The legacy issues are being dealt with separately. Those are more of administrative nature, we are already working on that. As has been pointed out earlier in Budget speech that administrative mechanism is being put in place to solve the legacy issues also,” Mody said addressing a Ficci event.

Do you know What is Revenue Deficit, Centrally Sponsored Scheme, Non Tax Revenue, Demand for Grants, Dividend Distribution Tax? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1Budget 2019: Shashi Tharoor uses cricket analogy to criticise government for not addressing key issues
2Budget 2019: Surat textile industry not happy with decision on excise duty, fuel cess
3Budget 2019: Sitharaman offers an array of tax reliefs to start-up fraternity