New Delhi, April 27 -- Seven months after the Indian tax authorities eased the valuation norms for foreign investments in startups, in an attempt to address concerns over the controversial "angel tax," the situation has only grown more turbulent for these fledgling firms.

According to industry insiders and tax experts, numerous startups have already filed legal challenges against the tax demands levied on them, with more gearing up to follow suit.

At the crux of these disputes lies the tax department's stance on differing with or altering the valuation methods adopted by startups, despite the firms adhering to the prescribed guidelines.

"The tax rules don't mandate startups to choose any specific method for valuing the investments; it ...