Income Tax Dept withdraws money for startups in the name of angel tax.

What came as a major blow for startups, the Income Tax department has taken money from bank accounts of many startups in lieu of angel tax. Just at the moment when the government is trying to resolve the issue.

The income tax department had frozen four bank accounts of TravelKhana and withdrew about Rs 33 lakhs as angel tax on investments raised by the company from angel investors.

The government has frozen three accounts of the company with ICICI Bank and one in State Bank of India.

Primarily all the angel tax-related issues are under section 56 and section 68 and the company TravelKhanna even had a tax liability of Rs 2.5 crore.

It was reported that four people went to the bank and they withdrew all the money from TravelKhanna using a demand draft and froze the account

Child healthcare website Babygogo’s CEO and co-founder Siddharth Ahluwalia has reportedly tweeted that his company has also left with no money after the tax department has deducted Rs 72 lakh as angel tax.

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