AIFs are established or incorporated for the purpose of pooling in capital
Picture used for representational purpose. (photo: PTI/File)
New Delhi: The finance ministry has said that the income of the Alternative Investment Funds will be taxed at the maximum rate of 30 per cent.
“Where the (AIF) trust deed either does not name the investors, or does not specify the beneficial interest, the entire income of the fund shall be liable to be taxed at the maximum marginal rate of I-T in the hands of the trustees of such AIFs in their capacity as representative assessee,” a CBDT circular said. The total incidence of the tax will also include education cess and surcharge.
AIFs are funds established or incorporated for the purpose of pooling in capital from Indian and foreign investors for investing as per a policy. The circular has been issues in view of representations recei-ved on taxation of AIFs, which are treated as venture capital funds.
( Source : dc correspondent )
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