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Home > News > New direct tax code to make fund-raising easier for VCs

August 13th, 2009

New direct tax code to make fund-raising easier for VCs

Abstract:
According to the provisions of the Income Tax Act, VC funds that invest in nine designated sectors — biotechnology, nanotechnology, IT hardware and software, research and development for new chemical entities, seed research, dairy, poultry, bio-fuels and large hotel-cum-convention centers — do not pay any tax on the gains realised on such investments. But the investors or limited partners (LPs) in these funds pay the tax.

Source:
business-standard.com

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