India\u2019s startup ecosystem stakeholders have demanded that CBDT expedite the process of clearing the \u201cSection 56 Exemption Declaration\u201d certificate to the startups. It is of the view that startups, who have received assessment orders from the I-T department, have been applying for the exemption ever since the DPIIT\u2019s February 19 notification on angel tax but they have not yet received the certificate.\r\n\r\n\u201cThere is no reprieve so far for several startups that have received the orders; but if their appeals are handled in a fast track manner to process the new Startup India angel tax exemption certificate, which they produce during the hearing, it would be very helpful to them and we have shared the same with Akhilesh Ranjan, Member CBDT yesterday,\u201d Sachin Taparia, founder of an online citizens\u2019 forum, LocalCircles, told Inc42.\r\n\r\nOnce a startup registers at the Startup India website, it will need to file Form 2 (Section 56 Exemption Declaration). This form goes to DPIIT who then scrutinises the application and transfers it to the CBDT, and if the startup is within the INR 25 Cr exemption limit, he is safe from the angel tax.\r\n\r\n\u201cOnce the DPIIT approves the certification of startups, an electronic communication goes to the CBDT who marks them as startups in their system. This process is important \u2014 and we have asked them to bridge this communication gap quickly \u2014 so that, whenever a share premium event happens and notice gets generated, the startups who have applied for exemption won\u2019t get a notice under Section 56(2)(viib),\u201d Taparia said.\r\n\r\nHe said that CBDT is expected to convene an internal meeting this week to resolve this issue.\r\n\r\nAccording to Taparia, DPIIT had earlier ensured the stakeholders to soon complete their side of processes for the CBDT to issue an acknowledgement to startups stating that they have received their submission.\r\n\u201cI assume that they will have this process figured out by this month and then assuming that this letter goes out, then the startups\u2019 appeal can be heard by April 30,\u201d Taparia asserted.\r\nInc42 had earlier reported that startups who have registered with Startup India can fill up the declaration form and submit the certificate during the appeal process and also meet the Principal Commissioner of their respective zones. The CBDT has sent an internal memo directing commissioners to close the appeal process for startups on priority.\r\n\r\n\u201cThis declaration form has recently gone live. I am hoping that within a week the entire loop will be closed. The quicker a startup applies for this certificate, the easier it will become for them to get the exemption,\u201d early-stage venture capital fund 3One4 Capital\u2019s founding Partner Siddarth Pai, said.\r\n\r\nAccording to LocalCircle\u2019s estimate, more than 300 startups have received the angel tax assessment order under Section 56(2)(viib).