In what will give relief to 90 startups from taxman’s questioning their valuation during fund raising rounds and slapping angel tax, the Central Board of Direct Taxes (CBDT) has given them a written assurance and registered them for Startup India Action Plan, according to two people with direct knowledge of the matter.

Under the Startup India Action Plan, a Department of Industrial Policy and Promotion (DIPP) initiative, the startups were asked to submit all details related to capital raising and promoters, and if accepted, they get an immunity from future tax demands under section 56(2)viib of the Income Tax Act.

The angel tax and the income tax section deals with premiums paid by investors while they invest in unlisted companies.

Startups have been issued notices under two income tax sections — 56(2)(viib), which deals with valuations (classification of a funding as income or investment), and Section 68, which is about unexplained credit.

The DIPP leeway only pertains to tax demands where valuations of startups have been questioned.

Industry trackers say that while the DIPP registration is a start, there may still be some glitches before the startups to get a complete reprieve from angel tax. “The acknowledgement emails that have been sent by CBDT in regards to investment declaration for exemption from Section 56(2) viib seemed incomplete and we have outlined the same to CBDT,” said Sachin Taparia, founder and chairman, LocalCircles, an online platform.

“CBDT has agreed to enhance the acknowledgement & both Department for Promotion of Industry and Internal Trade (DPIIT) and CBDT have assured us that soon they will have an integration allowing digital information exchange, through which all such exempted startups will be identified in the CBDT system so no new scrutiny notice generation happens against them in case there is a share premium event,” said Taparia.

CBDT had sent an email and said “receipt of form 2 in CBDT is acknowledged.” ET has seen one of the mails sent to a startup by CBDT.

Industry trackers have asked the tax department to issue a little more detailed mail and also add these approvals in their internal systems. The new detailed mails will be sent in the coming week, said people in the know.

Earlier this month, the CBDT had asked its officers across India to avoid taking “coercive measures” against startups that have received notices under the so-called angel tax, in what can be seen as softening of its stance.

“In the coming weeks, anywhere around 30 more startups will be issued the Startup India certificates which would give them angel tax immunity,” said a person with direct knowledge of the matter.