INCOME TAX
For the purposes of the Income Tax Act, 1961, Venture capital fund means a fund operating under a trust deed, registered under the provisions of the Indian Registration Act, 1908
In order to encourage the development of venture capital funds, the Income Tax Act, 1961 exempts the income of a venture capital fund from income tax.
TO CLAIM FOR THE BENEFIT OF THIS EXEMPTION, APPROVAL IS REQUIRED BY THE CENTRAL GOVERNMENT
Certain guidelines need to be followed for approval from the Director of Income Tax (Exemption) :
The application for approval shall be made in Form 56A by the venture capital fund or venture capital company
Every application must be made in any previous year in which any income by way of dividend or long term capital gains is earned by a venture capital funds
Every application for approval shall be accompanied by the following documents:-
A copy of trust deed or certificate of incorporation under the company act.
Balance Sheets and Profit and Loss Accounts for three previous years immediately preceding the year in which the application is made.
Form 56B and 56C duly filled in by and signed by the applicant.
A copy of the certificate of registration from SEBI
The Director of Income Tax (Exemption) shall approve the venture capital fund or the venture capital company, as the case may be, subject to the following conditions:-
The venture capital fund or the venture capital company must be registered with SEBI.
Every venture capital fund / company invests an amount of not less than 80% of his total money raised for investment by way of acquiring equity shares of the venture capital undertaking
For the purposes of the Income Tax Act, 1961, Venture capital fund means a fund operating under a trust deed, registered under the provisions of the Indian Registration Act, 1908
In order to encourage the development of venture capital funds, the Income Tax Act, 1961 exempts the income of a venture capital fund from income tax.
TO CLAIM FOR THE BENEFIT OF THIS EXEMPTION, APPROVAL IS REQUIRED BY THE CENTRAL GOVERNMENT
Certain guidelines need to be followed for approval from the Director of Income Tax (Exemption) :
The application for approval shall be made in Form 56A by the venture capital fund or venture capital company
Every application must be made in any previous year in which any income by way of dividend or long term capital gains is earned by a venture capital funds
Every application for approval shall be accompanied by the following documents:-
A copy of trust deed or certificate of incorporation under the company act.
Balance Sheets and Profit and Loss Accounts for three previous years immediately preceding the year in which the application is made.
Form 56B and 56C duly filled in by and signed by the applicant.
A copy of the certificate of registration from SEBI
The Director of Income Tax (Exemption) shall approve the venture capital fund or the venture capital company, as the case may be, subject to the following conditions:-
The venture capital fund or the venture capital company must be registered with SEBI.
Every venture capital fund / company invests an amount of not less than 80% of his total money raised for investment by way of acquiring equity shares of the venture capital undertaking