<h1>CBDT Eases Tax Pressure on Startups by Halting Coercive Recovery of Valuation Disputes u/s 56(2)(viib.</h1> The Central Board of Direct Taxes (CBDT) has addressed issues concerning the valuation of unquoted equity shares of 'Start Up' companies under section 56(2)(viib) of the Income-tax Act. This section taxes the excess amount received over the fair market value of shares. Startups often use the Discounted Free Cash Flow Method for valuations, but these are sometimes rejected by tax officers, leading to additional tax demands. The CBDT has decided that no coercive measures will be taken to recover these demands for startups defined under the DIPP notification, and appeals should be expedited.