Section 10(23FB) → Section 12
Income of Venture Capital Company or Venture Capital Fund
Quick Answer
Section 10(23FB) of the Income Tax Act, 1961 (Income of Venture Capital Company or Venture Capital Fund) corresponds to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 10(23FB)
Provision Summary
Exempts the income of a VCC or VCF from investments made in a venture capital undertaking.
Sec 12
Provision Summary
Retained but aligned strictly with the Category I AIF pass-through framework under Section 115UB.
Key Changes & Highlights
- Harmonized with Alternative Investment Fund (AIF) regulations.
Related Sections
Frequently Asked Questions
What does Section 10(23FB) of the Income Tax Act 1961 deal with?
Section 10(23FB) (Income of Venture Capital Company or Venture Capital Fund) Exempts the income of a VCC or VCF from investments made in a venture capital undertaking.
What is the new section number for Section 10(23FB) under the Direct Tax Code 2025?
Section 10(23FB) of the ITA 1961 maps to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 10(23FB) under the new tax code?
Section 10(23FB) is marked as "Retained" with status "Active". Impact: High - Essential for the Startup funding ecosystem.
What are the key changes to Section 10(23FB) under DTC 2025?
Harmonized with Alternative Investment Fund (AIF) regulations.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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