1/ Most people have been watching in shock as the story of dreaded #AngelTax reared it's disgusting head. Freezing the accounts of startup @Travelkhana and @babygogo_in has resulted in an uproar across India's startup community, calling for #ShutdownIndia

2/ Though the Central Board of Direct Taxation (CBDT) has released a circular claiming that the officer in charge of this particular case did everything by the book. Founder of @Travelkhana, @pushpinder has disputed the story, claiming the officer rushed the case through.

3/ Regardless whether the case was rushed through or not, is almost irrelevant because in any logical, normal universe, the case shouldn't exist at all. Period!

4/ Taxing a startup because it raised money from investors at a valuation which was above fair market value as determined by a bureaucrat sitting behind a desk who is judged by how much tax he collects, is perverse.

5/ Meanwhile, the Indian @DIPPGOI has announced that rules will be forthcoming and a self signed document claiming that raised funds won't be used to buy gold, property, etc. will be sufficient for startups to submit and not be taxed up to a certain limit.

6/ How long will it be before some other piece of paper is held up against entrepreneurs trying to build the next generation of businesses in India? We've seen plenty of circumstances where members of Indian bureaucracy have directly and personally benefitted from more complexity

7/ With all of the wins we've sen in India (mostly small to medium-size) & the potential that India offers (rapid mobile Internet adoption, cheaper phones, 500M Internet users, etc.) bureaucrats & politics still stick to their ancient beliefs of "Guilty until proven innocent"

8/ Though a lot has improved in the 12 years that I've been involved with Indian startups, it's clear that more should start looking at setting up in a startup friendly domicile like the US or Singapore.They should go where their talents are appreciated like the 70's and 80s.

9/ It's unfortunate that #StartupIndia & #MakeInIndia haven't become a reality but it's not something #startups or #investors can continue to pin their hopes on. As a community, we need to stand together & #resist #taxterrorism.

10/ I hope the Indian ecosystem stands together and finds a way to get the Indian Parliament to revoke the section of the tax code that has led to the #AngelTax. It would be a shame to see the ecosystem buckle at such a pivotal time because of a regressive & draconian tax.