KAMAKSHI NATARAJAN (ARTICLES) 21 July 2019
I have posted a topic on insecular venture capital asset.
Continuous business operations that are creating venture asset like how in hindu undivided family but with a variation that the asset created is wholly business based.
Say for instance the personal intellectual rights is inhibited onto the business operations and an asset with accrued interest is created that is called insecular venture capital asset.
How will you distinguish personal intellectual rights from business rights
While acquiring a bank loan for a business if I have suggested a recurring deposit working nature to a bank indirectly by opting for an interest rate, the interest and the related portion of the deposit is nothing but insecular venture capital asset. That portion is not a managerial remuneration but it is tax chargeable professional income. Here the deposit itself is created by the professional intelligence hence the venture capital asset is professional income. The bank should segregate this recurring deposit created and should keep it in savings account rather than in current account.
When a business house have suggested for a recurring deposit convertible to temporary loans methodology thereby increasing recurring deposit and temporary loans interest rates by acquiring a working capital loan with interest as per banking norms as on the date of working capital loan, the bank if it is ok will allocate a recurring deposit as professional income to the business house with the bank decided interest rate which will be at disadvantage to the business house. This is the scenario in existence but the thing is now the recurring deposit given to the business house is a professional income of the business intelligence.