Under Eye of Income Tax – Tax Experts Engaged in Valuation of Startups

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  • Income Tax authority has started questioning to CA, CS, tax consultant & tax expert who were under the process of valuation of startups.
  • It is directly linked to the methodology adopted for the valuation of startups in 2014 and 2015.
  • Tax officers says, valuation had been done by consultants / tax experts in year 2014 and 2015 are very high & they are also interested to know the causes / facts on which valuation were given.
  • It is unfair value & excess amount received over & above the fair value should be considered as its income and not capital.
  • On the other hand, tax experts says valuation were done on the basis of future projected revenue & expected growth of startups which were prevailing in 2014 not now in 2017.
  • However, startups are unable to achieve the target & failed.

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