In a boost to the Alternate Investment Funds (AIF) industry, tax authorities have clarified that non-resident investors investing through multi-layered structures would not be covered under the ambit of “indirect transfer” provisions of the income tax law. The latest Central Board of Direct Taxes (CBDT) move will allay the concerns of investment funds, including private equity and venture capital funds, which feared multiple taxation of the same income at the time of subsequent redemption or buyback by non-residents in their offshore entities.
- Rakesh Nangia, Managing Partner shares his views on aforementioned story for Hindu Business Line.
- Suraj Nangia, Partner shares his views on the queries raised by Financial Express readers.
