Start-up tax woes: I-T dept can withdraw from bank accounts, say experts

It's not unusual for the tax departments to freeze bank accounts and there have been instances of the authorities recovering the outstanding from the bank

The income-tax (I-T) department’s aggressive action against two start-ups — TravelKhana and Babygogo — due to ‘unexplained cash’ has taken the industry by surprise. The department took money out of their accounts — something that is quite rare. Tax experts say that such measures are taken only when the company is on the verge of liquidation. 

However, tax experts say that companies need to be pro-active and approach the right authorities to avoid such situations as soon as a notice is issued.