Income Tax Act, 2025
Section 2: Ins. by Act 20 of 2015, s. 7 (w.e.f. 12016).
2. Ins. by Act 20 of 2015, s. 7 (w.e.f. 12016).
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(c) any clearing member contributing to the Core Settlement Guarantee Fund;]
1[(23F) any income by way of dividends or long-term capital gains of a venture capital fund or a
venture capital company from investments made by way of equity shares in a venture capital
undertaking:
Provided that such venture capital fund or venture capital company is approved for the purposes
of this clause by the prescribed authority in accordance with the rules made in this behalf and satisfies
the prescribed conditions :
Provided further that any approval by the prescribed authority shall, at any one time, have effect
for such assessment year or years, not exceeding three assessment years, as may be specified in the
order of approval:
2[Provided also that nothing contained in this clause shall apply in respect of any investment
made after the 31st day of March, 1999.]
3* * * * *
Explanation.—For the purposes of this clause,—
(a) “venture capital fund” means such fund, operating under a trust deed registered under the
provisions of the Registration Act, 1908 (16 of 1908), established to raise monies by the trustees
for investments mainly by way of acquiring equity shares of a venture capital undertaking in
accordance with the prescribed guidelines;
(b) “venture capital company” means such company as has made investments by way of
acquiring equity shares of venture capital undertakings in accordance with the prescribed
guidelines;
4[(c) “venture capital undertaking” means such domestic company whose shares are not listed
in a recognised stock exchange in India and which is engaged in the business of generation or
generation and distribution of electricity or any other form of power or engaged in the business of
providing telecommunication services or in the business of developing, maintaining and
operating any infrastructure facility or engaged in the manufacture or production of such articles
or things (including computer software) as may be notified by the Central Government in this
behalf;and
(d) “infrastructure facility” means a road, highway, bridge, airport, port, rail system, a water
supply project, irrigation project, sanitation and sewerage system or any other public facility of a
similar nature as may be notified by the Board in this behalf in the Official Gazette and which
fulfils the conditions specified in sub-section (4A) of section 80-IA;]]
2[(23FA) any income by way of 5[dividends, other than dividends referred to in section 115-O], or
long-term capital gains of a venture capital fund or a venture capital company from investments made
by way of equity shares in a venture capital undertaking:
Provided that such venture capital fund or venture capital company is approved, for the purposes
of this clause, by the Central Government on an application made to it in accordance with the
rules made in this behalf and which satisfies the prescribed conditions:
any clearing member contributing to the Core Settlement Guarantee Fund;]
1[
any income by way of dividends or long-term capital gains of a venture capital fund or a
venture capital company from investments made by way of equity shares in a venture capital
undertaking:
Provided that such venture capital fund or venture capital company is approved for the purposes
of this clause by the prescribed authority in accordance with the rules made in this behalf and satisfies
the prescribed conditions :
Provided further that any approval by the prescribed authority shall, at any one time, have effect
for such assessment year or years, not exceeding three assessment years, as may be specified in the
order of approval:
2[Provided also that nothing contained in this clause shall apply in respect of any investment
made after the 31st day of March, 1999.]
3* * * * *
Explanation.—For the purposes of this clause,—
“venture capital fund” means such fund, operating under a trust deed registered under the
provisions of the Registration Act, 1908 (16 of 1908), established to raise monies by the trustees
for investments mainly by way of acquiring equity shares of a venture capital undertaking in
accordance with the prescribed guidelines;
“venture capital company” means such company as has made investments by way of
acquiring equity shares of venture capital undertakings in accordance with the prescribed
guidelines;
4[
“venture capital undertaking” means such domestic company whose shares are not listed
in a recognised stock exchange in India and which is engaged in the business of generation or
generation and distribution of electricity or any other form of power or engaged in the business of
providing telecommunication services or in the business of developing, maintaining and
operating any infrastructure facility or engaged in the manufacture or production of such articles
or things (including computer software) as may be notified by the Central Government in this
behalf;and
“infrastructure facility” means a road, highway, bridge, airport, port, rail system, a water
supply project, irrigation project, sanitation and sewerage system or any other public facility of a
similar nature as may be notified by the Board in this behalf in the Official Gazette and which
fulfils the conditions specified in sub-section
of section 80-IA;]]
2[
any income by way of 5[dividends, other than dividends referred to in section 115-O], or
long-term capital gains of a venture capital fund or a venture capital company from investments made
by way of equity shares in a venture capital undertaking:
Provided that such venture capital fund or venture capital company is approved, for the purposes
of this clause, by the Central Government on an application made to it in accordance with the
rules made in this behalf and which satisfies the prescribed conditions: