In terms of section 10(23 F) of IT Act
income by exemptions way of dividend and long term capital gains received
by approved VC Companies/Funds from investment made by way of equity
shares in a VC undertaking are exempt from tax.
rules amended on 18th July 1995 introduced a rule 2(D) which allowed tax
exemption under the aforementioned section provided, among others,
An application is made to Director of IT (Exemptions) by the VCC or VCF
VCF/VCC is registered with SEBI.
Not less than 80% of the fund corpus/paid up capital is invested by year
The VCC/VCF does not invest more than 5% of paid up capital/fund corpus in
one VC undertaking.
VCC/VCF does not invest more than 40% in equity capital of one VC