Meaning of ‘Infrastructure Capital Company & Fund’ under Income Tax

Definition of ‘Infrastructure Capital Company’ and ‘Infrastructure Capital Fund’ under S. 2(26A) & S.2(26B) of Income Tax

a) Definition of ‘Infrastructure Capital Company’ – S.2(26A)

As per S.2(26A) of the Income Tax Act, 1961, unless the context otherwise requires, the term “infrastructure capital company” means means such company which makes investments by way of acquiring shares or providing long-term finance to any enterprise or undertaking wholly engaged in the business referred to in sub-section (4) of section 80-IA or sub-section (1) of section 80-IAB or an undertaking developing and building a housing project referred to in sub-section (10) of section 80-IB or a project for constructing a hotel of not less than three-star category as classified by the Central Government or a project for constructing a hospital with at least one hundred beds for patients.

b) Definition of ‘Infrastructure Capital Fund’ – S.2(26B)

As per S.2(26B) of Income Tax Act, 1961, unless the context otherwise requires, the term “infrastructure capital fund” means such fund operating under a trust deed registered under the provisions of the Registration Act, 1908 (16 of 1908) established to raise monies by the trustees for investment by way of acquiring shares or providing long-term finance to any enterprise or undertaking wholly engaged in the business referred to in sub-section (4) of section 80-IA or sub-section (1) of section 80-IAB or an undertaking developing and building a housing project referred to in sub-section (10) of section 80-IB or a project for constructing a hotel of not less than three-star category as classified by the Central Government or a project for constructing a hospital with at least one hundred beds for patients.

To claim exemptions and incentives meant for Infrastructure Capital Company/ Funds under the Income Tax, it’s very important to understand their meaning.

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