India - Income Tax Act 2010 - Saarc

1.89 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 10(23F)16[* * *]16[* * *]Explanation.—For the purposes of this clause,—(a) “venture capital fund” means such fund, operating under a trustdeed registered under the provisions of the Registration Act, 1908(16 of 1908), established to raise monies by the trustees forinvestments mainly by way of acquiring equity shares of aventure capital undertaking in accordance with the prescribedguidelines;(b) “venture capital company” means such company as has madeinvestments by way of acquiring equity shares of venture capitalundertakings in accordance with the prescribed guidelines;17[(c) “venture capital undertaking” means such domestic companywhose shares are not listed in a recognised stock exchange inIndia and which is engaged in the business of generation orgeneration and distribution of electricity or any other form ofpower or engaged in the business of providing telecommunicationservices or in the business of developing, maintaining andoperating any infrastructure facility or engaged in the manufactureor production of such articles or things (including computersoftware) as may be notified 18 by the Central Government in thisbehalf; and(d) “infrastructure facility” means a road, highway, bridge, airport,port, rail system, a water supply project, irrigation project, sanitationand sewerage system or any other public facility of asimilar nature as may be notified by the Board in this behalf in theOfficial Gazette and which fulfils the conditions specified in subsection(4A) of section 80-IA;]16. Third and fourth provisos omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999. Priorto their omission, the third and fourth provisos, as inserted by the Finance Act, 1995, w.e.f.1-4-1996, read as under :“Provided also that if the aforesaid equity shares are transferred (other than in the eventof the said shares being listed in a recognised stock exchange in India) by a venture capitalfund or a venture capital company to any person at any time within a period of three yearsfrom the date of their acquisition, the aggregate amount of income by way of dividendson such equity shares which has not been included in the total income of the previous yearor years preceding the previous year in which such transfer has taken place shall bedeemed to be the income of the venture capital fund or of the venture capital companyof the previous year in which such transfer has taken place:Provided also that the exemption shall not be allowed in respect of the long-term capitalgains, if any, arising on such transfer of equity shares as is mentioned in the third proviso.”17. Clauses (c) and (d) substituted for clause (c) by the Finance (No. 2) Act, 1998, w.e.f.1-4-1999. Prior to substitution, clause (c) was amended by the Finance Act, 1997, w.e.f.1-4-1998.18. For notified articles or things, see Taxmann’s Master Guide to Income-tax Act.