Redemption of Units in AIF Category 3

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H Thakar (Querist)
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10 July 2024 Redemption of Units in AIF Cat 3. I have redeemed 2 AIF after holding them for period of 9 months & 16 months. How Gains on above redemptions will be treated & taxed???

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 July 2024 Income from Category III AIFs is tax-free at the investor’s level because these AIFs are not granted a pass-through status, meaning that the fund is responsible for paying the tax.

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H Thakar

H Thakar (Querist)
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10 July 2024 Understood. But what about amount received in excess of investment amount. Suppose invested Rs 1 Cr and at time of redemption received 1.25 Crs. I want to understood how 0.25 Crs will be accounted and in ITR whether to show above figure or not

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 July 2024 Declare it under Exempted income.

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H Thakar

H Thakar (Querist)
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10 July 2024 Thank you for the quick response

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 July 2024 "Sorry, I am not a featured member."

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