Venture capital funds (VCFs) have received the government's approval to be treated as pass-through vehicles, thereby eliminating instances of double taxation. The government has revised the rules for VCFs as follows:
- The government will provide a mechanism for 'single window' clearance;
- VFCs will only be taxed once;
- VCFs must only register with the Securities and Exchange Board of India (SEBI);
- SEBI will evaluate a uniform policy for advertising mutual fund; and
- SEBI will issue a directive requiring mutual funds to provide investors with clear and accurate information on the performance of the fund, including annual income tax returns.
For further information on this topic please contact Shardul Thacker at Mulla & Mulla & Craigie Blunt & Caroe by telephone (+91 22 204 4960) or by fax (+91 22 204 0246) or by e-mail ([email protected]).
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