Taxation of ‘ AIF ‘ non-charitable trusts in the hand of trustees

CBDT clarify that if the trust deed does not specify the name of investors and their beneficial interest, then entire income of the Alternative Investment Funds shall become liable to be taxed at the Maximum Marginal Rate of income -tax in the hands of the trustees of such AIF’s in their capacity as ‘Representative Assessee’.

It is also clarified that in such cases, No assessment of same income shall be conduct in the hands of investor by invoking section 166, since the corresponding income has already been taxed in the hands of the ‘Representative Assessee’ under section 164(1) of the Act. Continue reading