News & Media 8th Feb 2022

Can the ‘source of fund’ rule in Budget hinder non-VC investments in start-ups?

Authors

Darshan Bora Partner | Bengaluru

Latest Thought Leadership

News & Media 26th Apr 2025

Dailyhunt’s parent VerSe’s group CFO resigns amid other exits in finance team

Read More
Alerts & Updates 25th Apr 2025

RBI’s Draft Directions on Securitisation of Stressed Assets, 2025 (Released on April 9, 2025)

Read More
Newsletter/Booklets 22nd Apr 2025

Competition Law & Policy Newsletter for Q1 of 2025

Read More
Alerts & Updates 22nd Apr 2025

Implementation of the Cape Town Convention in India: A Legal Framework for Protection and Enforcement of Security Interests in Aircraft

Read More

Darshan Bora, partner, Economic Laws Practice (ELP) has been quoted in Business Today in their article titled ‘Can the ‘source of fund’ rule in Budget hinder non-VC investments in start-ups?’
Darshan says, “Once the proposed amendment is effective, in addition to the recipient of a loan or borrowing, even the lender may be called upon to provide justification about the nature and source of funds loaned by him. If the lender is unable to provide a satisfactory explanation, the amounts can be taxed as income in the hands of the recipient of the loan. It will increase the compliance burden on start-ups who receive loans or borrowings. This provision does not apply to amounts received from a venture capital fund or venture capital company”

 Read comment and the detailed article: Click Here

Privacy Policy

As per the rules of the Bar Council of India, lawyers and law firms are not permitted to solicit work or advertise. By clicking on the "I Agree" button, you acknowledge and confirm that you are seeking information relating to Economic Laws Practice (ELP) of your own accord and there has been no advertisement, personal communication, solicitation, invitation or any other inducement of any sort whatsoever by or on behalf of ELP or any of its members to solicit any work through this website.