Income Tax Department also gave a befitting reply(Income Tax)

New Delhi. Former CEO of BharatPe and former judge of business reality TV show Shark Tank India,  (Income Tax) Ashneer Grover has raised questions on the action of the Income Tax Department, under which ITR details of investors of startups were sought. Now the Income Tax Department has also given a befitting reply to Grover. The department has said that income tax officials may seek details about the ITR filed by startup investors to ascertain whether the amount invested is in line with the income shown in their individual ITR.

Responding to a post by Ashneer Grover on social networking platform Grover had raised the issue that ‘in the last one month, many startups have received tax notices, in which they have been asked to provide information about their shareholders.’

The Income Tax Department said, “In this case, the Department appears to have sought to investigate the genuineness of the transactions by the shareholder-investor and the source of investment, so as to verify that the amount invested is as per the ITR of the investors. Whether it is in accordance with the income shown in the Income Tax Act or not.”