* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Saturday, August 16, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    ‘The Rainmaker’ Premiere: Milo Callaghan Breaks Down Rudy Baylor’s ‘Misguided Valor’ – The Laconia Daily Sun

    Inside ‘The Rainmaker’ Premiere: Milo Callaghan Uncovers the Real Story Behind Rudy Baylor’s Misguided Valor

    Suicide Squad Member Gets New Origin in Absolute Flash – yahoo.com

    Suicide Squad Member Unveiled with Exciting New Origin in Absolute Flash

    I’ll miss the chaos of ‘And Just like That…’ (and Che Diaz too) – yahoo.com

    Why I’ll Truly Miss the Wild Ride of ‘And Just Like That…’ (and Che Diaz!)

    Webtoon Entertainment Stages Recovery With Disney’s Stamp of Approval – The Wall Street Journal

    Webtoon Entertainment Soars to New Heights with Disney’s Stamp of Approval

    Georgia Tech Launches Arts, Entertainment, and Creative Technologies Degree – Georgia Tech News Center

    Georgia Tech Unveils Exciting New Degree in Arts, Entertainment, and Creative Technologies

    John Davison departs from IGN Entertainment – GamesIndustry.biz

    John Davison Steps Down from IGN Entertainment Leadership

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Vermont famers say new technology is changing the state’s agriculture industry – News Channel 3-12

    Vermont Farmers Embrace New Technology Transforming the State’s Agriculture Industry

    Verb Technology Reports Revenue Growth Amidst Strategic Expansions – TipRanks

    Verb Technology Soars with Impressive Revenue Growth Driven by Strategic Expansions

    Midwest Technology Summit held in Fargo – WDAY Radio

    Midwest Technology Summit held in Fargo – WDAY Radio

    K1 Semiconductor Joins Chicago Quantum Exchange To Advance Wafer Technology. – Quantum Zeitgeist

    K1 Semiconductor Partners with Chicago Quantum Exchange to Revolutionize Wafer Technology

    Indirect tax transformation: Navigating change, embracing technology – Thomson Reuters tax and accounting

    Revolutionizing Indirect Tax: Embracing Technology to Navigate Change

    California’s wildfire moonshot: How new technology will defeat advancing flames – Los Angeles Times

    California’s Wildfire Revolution: How Cutting-Edge Technology Is Poised to Stop Raging Flames

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    ‘The Rainmaker’ Premiere: Milo Callaghan Breaks Down Rudy Baylor’s ‘Misguided Valor’ – The Laconia Daily Sun

    Inside ‘The Rainmaker’ Premiere: Milo Callaghan Uncovers the Real Story Behind Rudy Baylor’s Misguided Valor

    Suicide Squad Member Gets New Origin in Absolute Flash – yahoo.com

    Suicide Squad Member Unveiled with Exciting New Origin in Absolute Flash

    I’ll miss the chaos of ‘And Just like That…’ (and Che Diaz too) – yahoo.com

    Why I’ll Truly Miss the Wild Ride of ‘And Just Like That…’ (and Che Diaz!)

    Webtoon Entertainment Stages Recovery With Disney’s Stamp of Approval – The Wall Street Journal

    Webtoon Entertainment Soars to New Heights with Disney’s Stamp of Approval

    Georgia Tech Launches Arts, Entertainment, and Creative Technologies Degree – Georgia Tech News Center

    Georgia Tech Unveils Exciting New Degree in Arts, Entertainment, and Creative Technologies

    John Davison departs from IGN Entertainment – GamesIndustry.biz

    John Davison Steps Down from IGN Entertainment Leadership

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Vermont famers say new technology is changing the state’s agriculture industry – News Channel 3-12

    Vermont Farmers Embrace New Technology Transforming the State’s Agriculture Industry

    Verb Technology Reports Revenue Growth Amidst Strategic Expansions – TipRanks

    Verb Technology Soars with Impressive Revenue Growth Driven by Strategic Expansions

    Midwest Technology Summit held in Fargo – WDAY Radio

    Midwest Technology Summit held in Fargo – WDAY Radio

    K1 Semiconductor Joins Chicago Quantum Exchange To Advance Wafer Technology. – Quantum Zeitgeist

    K1 Semiconductor Partners with Chicago Quantum Exchange to Revolutionize Wafer Technology

    Indirect tax transformation: Navigating change, embracing technology – Thomson Reuters tax and accounting

    Revolutionizing Indirect Tax: Embracing Technology to Navigate Change

    California’s wildfire moonshot: How new technology will defeat advancing flames – Los Angeles Times

    California’s Wildfire Revolution: How Cutting-Edge Technology Is Poised to Stop Raging Flames

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

Budget 2024 | AIFs’ key priority is the support to navigate the tax and regulatory waters

July 23, 2024
in Business
Budget 2024 | AIFs’ key priority is the support to navigate the tax and regulatory waters
Share on FacebookShare on Twitter

India stands on the brink of unprecedented economic expansion, partially driven by the pivotal role of Alternative Investment Funds (AIFs) in channelling both domestic and international risk capital. As the Union Budget 2024 approaches, stakeholders in the funds industry eagerly anticipate clarifications that could catalyse further growth in this sector.

Clarity on Taxation of Category III AIFs

AIFs operate as privately pooled investment vehicles, which raise funds from a mix of domestic and international investors. These funds are deployed according to predefined investment policies aimed at generating profits. The tax treatment of AIFs depends on their legal structure (viz., trust, LLP, or company) and their category (viz., category I, category II and category III).

While Category I and II AIFs benefit from a ‘pass-through’ status, the same benefit has not been extended to Category III AIFs. These are funds employing complex trading strategies, with an investment focus of both listed and unlisted securities and include hedge funds and long-short funds. Without pass-through status, Category III AIFs face taxation at the entity level, often at the highest marginal rate with surcharges, significantly burdening investors who may not individually fall into such high tax brackets.

Moreover, Category III AIFs with long-short strategies suffer from the risk of having their entire income categorised as business income rather than capital gains, subjecting them to higher tax rates due to the frequency of their trading. The industry seeks a framework for single-layer taxation or clear principles for distinguishing between short-term trading and long-term investments for tax purposes.

Rationalising Taxation on Listed and Unlisted Instruments

Presently, capital gains from listed instruments are taxed at a lower rate (10%) than those from unlisted instruments (20%). This tax disparity discourages investments in the unlisted sector, particularly in startups, hindering efforts to foster a culture of entrepreneurship and innovation. To remedy this, stakeholders urge the government to consider reducing the tax burden on unlisted investments or aligning the tax rates with those applicable to listed instruments.

Clarity on Taxation of Carried Interest

Carried interest represents the share of profits distributed to fund managers based on the fund’s performance, often treated as capital gains for tax purposes. This treatment benefits from a lower rate of direct tax compared to business income tax rates. However, the absence of legislative backing for this practice leaves this approach vulnerable to potential reclassification as business income by tax authorities. Uncertainty also looms large over the applicability of indirect taxes (i.e GST) on carried interest earned by AIFs and several funds are receiving notice from income tax authorities raising further questions on this subject. The industry pleas that legislative framework akin to the European Union (where only fee-based services such as management fee are charged service tax) or UK (where only a fraction of carried interest is subject to service tax).

Enhancement of Overseas Investment Limits

AIFs can currently invest in venture capital undertakings outside India up to a total industry-wide limit of USD 1.5 billion, subject to SEBI’s approval for each investment. In contrast, international jurisdictions often allow funds to invest across borders without similar constraints. Stakeholders advocate for reforms to remove these limitations, encouraging more asset managers to establish global funds in India, thereby facilitating greater inflow of international capital in the economy.

Co-Investment Rules

Co-investment, in fund parlance, is where an AIF’s manager offers investments to other entities related to the fund. This activity was until very recently, unregulated in India. To bring such activities within its regulatory purview, SEBI recently introduced regulations defining the scope of co-investments and mandating a separate registration requirement. While these regulations aim to legitimise co-investment activities, stakeholders highlight the need for a holistic review of the regime, including the need to obtain a separate licence and prescriptive restrictions on the terms on which co-investments may be offered and made that may deter global funds from operating in India.

Conclusion 

The government’s support for the funds industry remains crucial for fostering a conducive economic environment for long-term growth. The government, through institutions such as Small Industries Development Bank of India  and National Investment and Infrastructure Fund has facilitated significant capital injection into the ecosystem. The time is ripe for strategic reforms to streamline regulatory frameworks, enhancing ease of doing business, and reinforcing India’s position as an attractive destination for global investment.

The Union Budget 2024 holds immense potential to address these strategic demands of the AIF sector, ensuring it continues to drive India’s economic growth trajectory in the years ahead.

—The authors; Siddharth Shah and Rohan Priyadarshi, are Partner, and Senior Associate respectively at Khaitan & Co. The views expressed are their personal.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : CNBCTV18 – https://www.cnbctv18.com/business/finance/budget-2024-aifs-key-priorities-navigating-the-tax-and-regulatory-waters-siddharth-shah-rohan-priyadarshi-19447211.htm

Tags: AIFs'budgetbusiness
Previous Post

‘Not true’: Rahat Fateh Ali Khan refutes arrest claims in Dubai

Next Post

Trump’s campaign calls Joe Biden’s exit, Kamala Harris’ endorsement ‘once-in-a-lifetime’ chance to defeat two democrats

Box, run, crash: China’s humanoid robot games show advances and limitations – The Guardian

Box, Run, Crash: Inside China’s Humanoid Robot Games Revealing Stunning Progress and Surprising Challenges

August 16, 2025
Customers look set to bear the tariff cost burden – Axios

Rising Tariff Costs: How They Impact Your Wallet and What You Can Do

August 16, 2025
‘The Rainmaker’ Premiere: Milo Callaghan Breaks Down Rudy Baylor’s ‘Misguided Valor’ – The Laconia Daily Sun

Inside ‘The Rainmaker’ Premiere: Milo Callaghan Uncovers the Real Story Behind Rudy Baylor’s Misguided Valor

August 16, 2025
NC state employee and teacher reps say health insurance increases will hurt worker retention – NC Newsline

Rising Health Insurance Costs Jeopardize Retention of State Employees and Teachers

August 16, 2025
DC police to share information with federal immigration officers – CNN

DC Police to Collaborate with Federal Immigration Officers in New Information Sharing Initiative

August 16, 2025
China’s Ecological Civilization Shaping a Sustainable Future – 中国科技网

China’s Ecological Civilization Shaping a Sustainable Future – 中国科技网

August 16, 2025
NVIDIA, National Science Foundation Support Ai2 Development of Open AI Models to Drive US Scientific Leadership – NVIDIA Blog

NVIDIA, National Science Foundation Support Ai2 Development of Open AI Models to Drive US Scientific Leadership – NVIDIA Blog

August 16, 2025
Boise State plans to build new science research building to help with capacity needs – KTVB

Boise State Unveils Plans for New Science Research Building to Boost Capacity

August 16, 2025
Why Some Physicians Still Lead With Lifestyle-First Obesity Care Despite the GLP-1 Revolution – Medscape

Why Many Physicians Still Champion Lifestyle-First Strategies in Obesity Care Despite the GLP-1 Revolution

August 16, 2025
Vermont famers say new technology is changing the state’s agriculture industry – News Channel 3-12

Vermont Farmers Embrace New Technology Transforming the State’s Agriculture Industry

August 16, 2025

Categories

Archives

August 2025
MTWTFSS
 123
45678910
11121314151617
18192021222324
25262728293031
« Jul    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (773)
  • Economy (796)
  • Entertainment (21,673)
  • General (16,494)
  • Health (9,834)
  • Lifestyle (806)
  • News (22,149)
  • People (797)
  • Politics (803)
  • Science (16,008)
  • Sports (21,293)
  • Technology (15,775)
  • World (778)

Recent News

Box, run, crash: China’s humanoid robot games show advances and limitations – The Guardian

Box, Run, Crash: Inside China’s Humanoid Robot Games Revealing Stunning Progress and Surprising Challenges

August 16, 2025
Customers look set to bear the tariff cost burden – Axios

Rising Tariff Costs: How They Impact Your Wallet and What You Can Do

August 16, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version