Whether a Venture Capital Fund claim credit for TDS for income assessable in hands of its constituents?





Readers would be aware that Venture Capital (‘VC’) Funds are accorded a pass-through status courtesy section 115U read with section 10(23FB) of the Income-tax Act, 1961 (‘the Act’). That would mean that the income derived by the VC Fund from a VC Undertaking though, is exempt in the Fund’s hands but would be taxable in the hands of the unitholders who have invested in the said Fund (also termed as ‘the constituents’).






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