Clarification On Taxability Of Income Earned From Off-Shore Investments In Investment Fund Routed Through An AIF




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Clarification On Taxability Of Income Earned From Off-Shore Investments In Investment Fund Routed Through An AIF

  1. Circular No. 14/2019 dated 03.07.2019, issued by the CBDT, clarifies the taxability of income earned by non-resident investors from offshore investments routed through investment funds. The circular applies to Category I or Category II Alternative Investment Funds (AIFs) regulated under the SEBI regulations.
  1. With the Finance Act of 2023, the definition of โ€˜investment fundโ€™ under the Income-tax Act, 1961 was amended to include a reference to the International Financial Services Centres Authority (Fund Management) Regulations, 2022 under the IFSCA Act, 2019.
  1. The circular has been amended to state that the provisions of Section 115UB of Chapter XII-FB apply to Category I or Category II AIFs regulated by either SEBI or the IFSCA and regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations. 2012) made under the Securities and Exchange Board of India Act. 1992 or regulated under the International Financial Services Centres Authority (Fund Management) Regulations, 2022 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019).

(Circular No.12/2023)




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