New Venture Ecosystem India Update May 7, 2007

Venture Equity Firms Structured as Trusts to Get Tax Exemption

GOI favors trusts as a favored venture private equity firm structure. According to an official, trusts can avail pass-through status on any income they earn from investments made in unlisted firms in India and abroad. Pass-through status means business earnings will not be taxed at the fund level. Earnings will only be taxed at the hands of final beneficiaries (typically limited partners of the fund). Here is the full story