Section 115U:
Tax on income in certain cases.
1(1) Notwithstanding anything contained in any other
provisions of this Act,any 2
income accruing or arising to or 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 2
income accruing or arising to or received by such person had he made
investments directly in the venture capital undertaking.
(2) 3
The person responsible for crediting or 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, 4
to the person who is liable to tax in respect of such
income and to the prescribed income-tax authority, a statement in the prescribed form and verified in the
prescribed manner, giving details of the nature of the 5
income paid or credited during the previous year
and such other relevant details as may be prescribed.
(3) 5
The income paid or credited 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 6
the person referred to in
sub-section (1) as it had been received by, or 7
had accrued or arisen 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 XVIIB shall not apply to the
income paid by a venture capital company or venture capital fund under this Chapter.
8
(5) The income accruing or arising to or received by the venture capital company or venture capital
fund, during a previous year, from investments made in venture capital undertaking if not paid or credited
to the person referred to in sub-section (1), shall be deemed to have been credited to the account of the
said person on the last day of the previous year in the same proportion in which such person would have
been entitled to receive the income had it been paid in the previous year.
9
(6) Nothing contained in this Chapter shall apply in respect of any income, of a previous year
relevant to the assessment year beginning on or after the 1st day of April, 2016, accruing or arising to, or
received by, a person from investments made in a venture capital company or venture capital fund, being
an investment fund specified in clause (a) of the Explanation 1 to section 115UB.
Explanation 101.—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.
11Explanation 2.—For the removal of doubts, it is hereby declared that any income which has been
included in total income of the person referred to in sub-section (1) in a previous year, on account of it
having accrued or arisen in the said previous year, shall not be included in the total income of such person
in the previous year in which such income is actually paid to him by the venture capital company or the
venture capital fund.
Notes:
1. Ins. by 10 of 2000, s. 57 (w.e.f. 1-4-2001).
2. Subs. by Act 23 of 2012, s. 57, for “income received” (w.e.f. 1-4-2013).
3. Subs. by s. 57, ibid., for “The person responsible for making” (w.e.f. 1-4-2013).
4. Subs. by s. 57, ibid., for “to the person receiving such income” (w.e.f. 1-4-2013).
5. Subs. by s. 57, ibid., for “income paid” (w.e.f. 1-4-2013).
6. Subs. by s. 57, ibid., for “the person receiving such income as it had been” (w.e.f. 1-4-2013).
7. Subs. by s. 57, ibid., for “had accrued” (w.e.f. 1-4-2013).
8. Ins. by s. 57, ibid. (w.e.f. 1-4-2013).
9. Ins. by Act 20 of 2015, s. 31 (w.e.f. 1-4-2016).
10. The Explanation renumbered as Explanation 1 thereof by Act 23 of 2012, s. 57 (w.e.f. 1-7-2012).
11. Ins. by s. 57, ibid. (w.e.f. 1-7-2012).