Modification Notification No. G.S.R. 364 (E)dated April 11, 2018
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Startup share issuance approval process updated: investor eligibility, capital thresholds, Form-2 filing and CBDT decision timeline clarified.
The notification revises approval procedures for DIPP-recognised startups seeking exemption under clause (viib) of section 56(2) by defining CBDT's role, setting capital-threshold and investor eligibility conditions, requiring submission of Form-2 to DIPP with detailed share, shareholder and valuation information, and mandating transmission to CBDT which must decide within forty-five days; audited accounts, startup tax returns, and investor income-tax returns and net worth certificate are required.