Issue/Justification
Section 115U(2) read with Rule 12C requires that the person responsible for crediting or making payment of the income on behalf of a Venture Capital Company (VCC) or a Venture Capital Fund (VCF) and the VCC/ VCF shall furnish a statement in Form No. 64 to the person liable to tax in respect of such income by 30th November of the financial year following the previous year during which such income is distributed.
Difficulty is faced by assessees who have to file their return of income by 31st July of the assessment year. Since income received by the investor is taxable in his hands, he has to declare his income in his return of income. However, the certificate is received by them by 30th November, which causes genuine difficulty to him.
Suggestion
To enable the investor of VCC/ VCF being an individual, to declare his income from VCC/ VCF in his return of income by 31st July, the due date of furnishing statement under Rule 12C should be changed to “30th June” from “30th November”.
