SPECIAL
PROVISIONS RELATING TO TAX ON INCOME RECEIVED FROM VENTURE CAPITAL COMPANIES
AND VENTURE CAPITAL FUNDS
115U.
Tax on income in certain cases:-
(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 authority, a statement in the prescribed form2[J2] 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 XIID or Chapter XIIE or Chapter
XVIIB 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.]