In September 2017, Nikunj Bubna was in the midst of raising another round of funds for the customer engagement and acquisition platform company he founded—Whats Extra India Private Limited. He had raised Rs 1.50 crore ($215,070) from angel investors nearly three years ago and signed up over 100 brands on his platform. His platform was one, where, while a customer made a payment, suggestions would pop up for items to be added to the purchase.
Startup India’s lethal nemesis: the angel tax
India’s income tax department usually fires away notices at the end of every year, but it may have just sent one too many to fledgeling startups of late. This despite the Indian government's 'Start-up India' plans
Staring at a slowdown in revenue collection, India’s revenue authorities are known to issue notices for deeper scrutiny before the year ends
In 2018, like before, many startups across the country started getting tax demands for the funds they had raised
The income tax officer is forced to go by the book when the higher-ups signal that revenue collection is less than desirable
Except these officers have sought to raise revenues from companies that still haven’t made a profit