Special provisions relating to tax on
income received
from venture capital companies and
venture capital funds
Tax on income in certain cases.
115U. (1) Notwithstanding anything contained in
any other provisions of this Act, any income received by a person out of
investments made in a venture capital company or venture capital fund shall be
chargeable to income-tax in the same manner as if it were the income received
by such person had he made investments directly in the venture capital
undertaking.
(2) The person responsible for making
payment of the income on behalf of a venture capital company or a venture
capital fund and the venture capital company or venture capital fund shall
furnish, within such time as may be prescribed, to the person receiving such
income and to the prescribed income-tax authority94[R2] , a statement in the prescribed form94[R3] and verified in the prescribed manner, giving
details of the nature of the income paid during the previous year and such other
relevant details as may be prescribed.
(3) The income paid by the venture capital
company and the venture capital fund shall be deemed to be of the same nature
and in the same proportion in the hands of the person receiving such income as
it had been received by, or had accrued to, the venture capital company or the
venture capital fund, as the case may be, during the previous year.
(4) The provisions of Chapter XII-D or
Chapter XII-E or Chapter XVII-B shall not apply to the income paid by a venture
capital company or venture capital fund under this Chapter.
Explanation.—For the purposes of this Chapter, “venture capital company”, “venture capital fund” and “venture capital undertaking” shall have the meanings respectively assigned to them in clause (23FB) of section 10.]