Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: list of goods taxed at 4% :: VAT Audit :: empanelment :: VAT RATES :: Central Excise rule to resale the machines to a new company :: cpt :: TDS :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4%
 
 
News Headlines »
 Mistakes in filing income tax returns that may get you a tax notice
 Know how you can claim return of income in Form 26 AS case
 What you must know for tax filing this year
 How to file tax return if you have two Form 16s
 10 things you should know about Form 26 AS
 How to file income tax return without Form 16
 How to rectify income tax returns
 Income-tax (21st Amendment) Rules, 2017
 Deadline for filing income tax return nears; here are 10 common mistakes that you must avoid
 All you need to know about form 26AS
 How to file income tax return?

Investments in PFC's VC fund may qualify for I-T exemption
December, 29th 2006

The power ministry has proposed fiscal breaks for contributions to the India Power Fund, a venture capital fund to be floated by Power Finance Corporation for investments in the power sector.

The government is considering an income-tax exemption up to 20% of the total contribution to the India Power Fund in an bid to facilitate investments to this sector,. The proposal which is a part of the budgetary wish list put forth by the power ministry is expected to go a long way in meeting the goal of Power for All by 2012. The sector will require investments to the tune of $200 billion to set up the additional capacities in the electricity sector.

The India Power Fund is a venture capital fund to be set up by the Power Finance Corporation of India. PFC is looking at formally establishing the fund in the first quarter of 2007.

Not only will the tax break help mop up funds for the sector, it will help kick start the India Power Fund, which has been in the making since February 2004.

It is hoped that the income tax break of 20% per year of the contribution to the fund for five years, will help garner funds, which the Power Finance Corporation can then invest in power sector projects. The proposal comes at a time when the Reserve Bank of India has raised the risk weightage requirement, forcing possible investors in the fund to back off.

PFC has been in talks with LIC and other banks for contributions to the fund. However the RBI guidelines seem to have paid put to any such partnerships. Earlier PFC had considered starting the fund on its own in case LIC and banks decline to contribute to the fund. This the Corporation would do by converting the fund into a mutual fund with contributions from retail investors.

In such a situation an income tax break will be welcome and help getting the fund of the shelf. The India Power Fund in February 2004 by Anant Geete power minister in the NDA government to meet the shortfall in equity needs for the power sector. The fund was shave an initial corpus of Rs 200 crore contributed by the Power Finance Corporation, and was expected to increase to Rs 7,000 crore. The funds was however never formally registered.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions