Readers would be aware that Venture Capital (‘VC’) Funds are accorded a pass-through status courtesy section 115U read with section 10(23FB) of the Income-tax Act, 1961 (‘the Act’). That would mean that the income derived by the VC Fund from a VC Undertaking though, is exempt in the Fund’s hands but would be taxable in the hands of the unitholders who have invested in the said Fund (also termed as ‘the constituents’).Readers would be aware that Venture Capital (‘VC’) Funds are accorded a pass-through status courtesy section 115U read with section 10(23FB) of the Income-tax Act, 1961 (‘the Act’). That would mean that the income derived by the VC Fund from a VC Undertaking though, is exempt in the Fund’s hands but would be taxable in the hands of the unitholders who have invested in the said Fund (also termed as ‘the constituents’).taxmann.com Latest ArticlesRead More
