2D.<\/b>\u00a0(1) For the purposes of clause (23F<\/i>) of section 10, the prescribed authority shall be the Director of Income-tax (Exemptions) having jurisdiction over the venture capital fund or the venture capital company who makes application for approval under sub-rule (2).<\/p>\n
(2) An application for approval shall be made in Form No. 56A by a venture capital fund or a venture capital company to the Director of Income-tax (Exemptions) referred to in sub-rule (1).<\/p>\n
(3) Every application under sub-rule (2) may be made in any previous year in which any income by way of dividend 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 shall not be included in computing the total income of such venture capital fund or venture capital company.<\/p>\n
(4) Every application for approval under sub-rule (2) shall be accompanied by the following documents, namely :\u2014<\/p>\n
\u00a0(a) a copy of trust deed or certificate of incorporation under the Companies Act, 1956 (1 of 1956);
\n(b) balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made;
\n(c) Forms 56B and 56C duly filled in and signed by the applicant; and
\n(d) a copy of the certificate of registration issued by the Securities and Exchange Board of India.<\/p>\n
(5) The Director of Income-tax (Exemptions) shall approve the venture capital fund or the venture capital company, as the case may be, subject to the following conditions, namely :\u2014<\/p>\n
(a) the venture capital fund or the venture capital company, as the case may be, is registered with the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (6) The Director of Income-tax (Exemptions) shall pass an order in writing granting approval or refusing approval to the venture capital fund or venture capital company, as the case may be\u00a0:<\/p>\n Provided<\/b>\u00a0that the Director of Income-tax (Exemptions) shall not refuse the approval except in concurrence with the Director-General of Income-tax (Exemptions):<\/p>\n Provided further<\/b>\u00a0that every venture capital fund or venture capital company, as the case may be, shall be given an opportunity of being heard before passing an order under this rule.<\/p>\n (7) The Director of Income-tax (Exemptions) shall withdraw the approval granted under sub-rule (6) in the following circumstances, namely :\u2014<\/p>\n (a<\/i>)\u00a0if the venture capital fund or the venture capital company\u2014<\/p>\n (i) fails to make investments in the manner specified in sub-rule (5); \u00a0(b) if the certificate of registration granted under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), to a venture capital fund or a venture capital company is suspended or cancelled by the Securities and Exchange Board of India.]<\/p>\n <\/span><\/p>\n","protected":false},"excerpt":{"rendered":" 2D.\u00a0(1) For the purposes of clause (23F) of section 10, the prescribed authority shall be [\u2026]<\/span><\/p>\n","protected":false},"author":68,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1439,1440],"tags":[],"yst_prominent_words":[1407,3499,3500,6470,6481,6484,462,6473,602,1406,6475,6469,6480,6483,6479,603,3492,3493,6485,3501],"_links":{"self":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/5127"}],"collection":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/users\/68"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/comments?post=5127"}],"version-history":[{"count":0,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/5127\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/media?parent=5127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/categories?post=5127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/tags?post=5127"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/yst_prominent_words?post=5127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n(b) 66<\/sup>[* * *]
\n(c) 66<\/sup>[* * *]
\n(d) a venture capital fund or a venture capital company, as the case may be, shall not invest more than 67<\/sup>[twenty] per cent of its total monies raised or total paid-up share capital in one venture capital undertaking;
\n(e) a venture capital fund or a venture capital company, as the case may be, shall not make investment of more than forty per cent in the equity capital of one venture capital undertaking;
\n(f) every venture capital fund and venture capital company, shall maintain books of account and get such books audited by an accountant, as defined in Explanation to sub-section (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Director of Income-tax (Exemptions) before the due date of filing of the return under sub-section (1) of section 139.<\/p>\n
\n(ii) invests more than 67<\/sup>[twenty] per cent of the monies raised by a venture capital fund or 67<\/sup>[twenty] per cent of paid-up share capital of the venture capital company, as the case may be, in one venture capital undertaking;
\n(iii) makes an investment of more than forty per cent in the equity capital in one venture capital undertaking;
\n(iv) fails to maintain books of account and get such accounts audited by an accountant or fails to file the audit report required in clause (f) of sub-rule (5);
\n(v) violates the provisions of the Act or rules made thereunder;<\/p>\n