A Domestic VC Fund (Private trust) receives subscriptions from various investors to units issued by it. The funds are invested theough a Trustee company and returns distributed to the Holders of the Unit. The Fund is not eligible for pass through U/s.115U as it does not invest in the specified sectors. Neither is it eligible for Tax exemption U/s.10(23FB).
1) How will the Fund be taxed in respect of the surplus generated by it.
2) And how will the ultimate beneficiaries the investors in the Units issued by the Trust be taxed.
Sathya
1) How will the Fund be taxed in respect of the surplus generated by it.
2) And how will the ultimate beneficiaries the investors in the Units issued by the Trust be taxed.
Sathya