gayatri projects limited - Edelweiss

after three years and issued on or after the 1st day of April 2006 -(i) National Highways Authority of India constituted under Section 3 of National Highways Authority of IndiaAct, 1988, and notified by Central Government in the Offical Gazette for purpose of this section; or(ii) Rural Electrification Corporation Limited, a company formed and registered under the Companies Act,1956; and notified by Central Government in the Offical Gazette for purpose of this section.If only part of the capital gain is so reinvested, the exemption shall be proportionately reduced. However, theamount so exempted shall be chargeable to tax subsequently, if the new bonds are transferred or convertedinto money within three years from the date of their acquisition.2.6 Venture Capital Companies / FundsAs per the provisions of section 10(23FB) of the Act, income of the following mentioned Venture Capital Companies/ Funds are exempt from tax.a) Venture Capital Company which has been granted a certificate of registration under the Securities andExchange Board of India Act, 1992 and notified as such in the Official Gazette; andb) Venture Capital Fund, operating under a registered trust deed or a venture capital scheme made by UnitTrust of India, which has been granted a certificate of registration under the Securities and Exchange Boardof India Act, 1992 and notified as such in the Official Gazette set up for raising funds for investment in aVenture Capital Undertaking.3. Wealth Tax Act, 1957Shares in a company held by a shareholder will not be treated as an asset within the meaning of Section 2(ea) ofWealth-tax Act, 1957; hence, wealth tax is not leviable on shares held in a company.4. The Gift Tax Act, 1957Gift of shares of the company made on or after October 1, 1998 are not liable to tax.Notes:1) All the above benefits are as per the current tax law and will be available only to the sole / first named holder incase the shares are held by joint holders.2) In respect of non-residents, taxability of capital gains mentioned above shall be further subject to any benefitsavailable under the Double Taxation Avoidance Agreement, if any between India and the country in which the nonresidenthas fiscal domicile.3) In view of the individual nature of tax consequence, each investor is advised to consult his / her own tax adviserwith respect to specific tax consequences of his / her participation in the scheme.39