Former BharatPe CEO Ashneer Grover Expresses Concern Over IT Department’s Latest Notice
Months after challenging a previous notice from the Income Tax Department, former BharatPe CEO Ashneer Grover is once again in the spotlight, this time questioning another notice issued by the tax authorities. The new notice, which has sparked controversy, requests startups to provide detailed income tax return (ITR) information for their investors spanning a three-year period.
Startups Grapple with Demands for Shareholder ITR Details
Ashneer Grover, a former judge on the popular television show “Shark Tank India,” shed light on the difficulties faced by several startups in responding to Income Tax notices that demand information about their shareholders. He drew attention to a specific aspect of the ITR notice, which mandates that startup companies must furnish the ITR details for all their shareholders for the past three years.
Income Tax Department’s Specific Request
The Income Tax Department’s notice, issued under Section 142(1) of the Income-tax Act, requests startups to provide specific documents. These documents are intended to substantiate the identity and ITR filing history of shareholders, as well as establish the creditworthiness of shareholders and the authenticity of transactions related to the infusion of share capital or premium account credits.
A Growing Concern Amongst Startups
In a tweet addressing this issue, Ashneer Grover highlighted the recent surge in Income Tax notices being sent to startups. He emphasized that several startups, including some within his own investment portfolio, have received these notices, which compel them to furnish detailed information about their shareholders.
Startling Questions Raised by Grover
Expressing his concern, Grover questioned the rationale behind demanding investors’ ITR details from startups. He raised the critical query of why shareholders would be inclined to share their income tax return information with startup companies.
A Call to Action for Finance Minister Sitharaman
In his concluding remarks, Ashneer Grover called upon Finance Minister Nirmala Sitharaman to investigate this matter. His appeal highlights the need for a closer examination of the Income Tax Department’s request and its potential implications for startup businesses and their investors.
The situation continues to evolve as startup founders and investors eagerly await a response from relevant authorities to address these concerns surrounding the latest Income Tax Department’s notice