Taxation of aif category iii formed as an irrevocable determinate trust

caronak (Manager) (42 Points)

03 April 2019  

We have one of our client being AIF Fund registered under SEBI regulations as Category III and is formed as an irrevocable determinate investment trust under the Indian Trust Act, 1882.

Pl advise us the tax liability at the Fund level for the following income earned by such AIF Fund along with the section details if possible: 

1. Gain of Rs 15,04,000 on the sale of equity shares Purchased on 15/10/2018 and sold on 12.03.2019 [As per it's PPM, Fund seeks to generate long term capital appreciation by investing in securities permitted in AIF Regulations.]

2. Dividend on Income from Equity Shares of Rs 15,50,000/-

3. Dividend from Kotak Liquid Fund -Daily Dividend Fund of Rs 12,00,000/-

Kindly also confirm whether the management charges of Rs 48,73,000; Custodian Fee of Rs 85000 and other office expenses relating to the activity of Rs 10,00,000, etc are allowable as selling expenses while calculating the tax on the above income earned.