The income tax department has sent notices to many startup funders and promoters, seeking details of certain investments and tax returns for three years preceding the year in which the money was infused. These are largely startups not recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) or cases where the I-T department suspects investments have been used for “roundtripping” of funds, ET has learnt.
These notices were issued in the first two weeks of April under Section 68 of the Income Tax Act. This section is…
