The Finance Act, 2007 has, with effect from the A.Y. 2008-2009 provided a new definition of venture capital undertaking, where the investment of a Venture Capital Company or Venture Capital Fund would be exempt from tax. Thus, “venture capital undertaking” means such domestic company whose shares are not listed in a recognized stock exchange in India and which is engaged in the:
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Business of:
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Nanotechnology
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Information technology relating to hardware and software development;
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Seed research and development;
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Bio-technology;
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Research and development of new chemical entities in the pharmaceutical sector;
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Production of bio-fuels; or
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Building and operating composite hotel-cum-convention centre with seating capacity of more than three thousand; or
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Developing or operating and maintaining or developing, operation and maintaining any infrastructure facility as defined in Section 80 IA(4).
2. Dairy or poultry industry. |
