‘Identity of the investor’, IT dept after Ashneer Grover raises questions over notices to startups2 min read 09 Sep 2023, 07:35 AM IST
Income Tax Dept. responds to Ashneer Grover's questions on notices to startups for investors' ITR details.
The Income Tax department on Friday responded to former BharatPe CEO Ashneer Grover's questions over notices being issued to startups for documents related to three-year ITR details of their investors and shareholders.
This came after Ashneer Grover again questioned the Income Tax Department's other notice. The notice asked startups to share the three-year ITR details of investors with the IT department.
Sharing the ordeal of a few startups, Ashneer Grover, said that they had received Income Tax notices that are asking to furnish information about shareholders. He specifically pointed towards that part of the ITR notice that asked start-up companies to furnish three-year ITR for all shareholders.
Former Shark Tank India judge also shared a copy of the IT department notice. In the notice, the IT department sought certain documents under section 142 (1) of the Income-tax Act.
“Provide documentary evidence to substantiate the identity and ITR of last three years of shareholders to substantiate the creditworthiness of the shareholders as well as the proof of genuineness of transaction in respect of fresh credit of the share capital /premium account," as stated in the IT department's notice.
“In the last 1 month, a number of startups (a few in my portfolio as well) have received Income Tax notices asking to furnish information about shareholders," he said in his tweet.
He later went on to regard the need to fulfill details of investors' ITR as contradictory to the situation and asked about the need for companies to have shareholders' ITR and why shareholders will share their ITR with startups. In the end, he also requested Finance Minister Nirmala Sitharaman to look into the matter.
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