I-T Department Tightens Noose Around Startups Over Potential Round-Tripping

A report by The Economic Times revealed that notices have been sent to startup investors and promoters, demanding detailed information about certain investments

These notices target mainly startups that are not recognised by DPIIT or instances where the department suspects the investment might be masking the real source of funds

Last month, the department sent similar notices to about 300 private equity firms and promoters over capital gains tax issues

As financial…