New Delhi: The Income Tax Department has slapped notices on some startups seeking information on creditworthiness of their investors as it looked to verify if the amount invested was commensurate with the income declared by the investors. “In the last one month, a number of startups (a few in my portfolio as well) have received Income Tax notices asking to furnish information about shareholders,” Grover had said on a post on X, formerly Twitter, September 8. “Why would a shareholder/individual share their ITR with a private company?”He went on to state that the reason given is to ‘to establish creditworthiness of shareholders’. After, Income Tax Department clarified the position clearing stating that the alternative to furnishing three years of income tax return is to furnish PAN of the investors, he posted again. But how can you also ask for 3 year tax returns of the investor from the start up?

Source: dna September 09, 2023 09:24 UTC