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Mihir Tanna  |727 Answers  |Ask -

Tax Expert - Answered on Nov 21, 2023

Milan Question by Milan on Sep 23, 2023Translate

What are tax implications of Investing and returns from start ups under AIF Cat1 for individual under both Resident , NRE & NRO accounts.

Ans: In category I of AIF, income would be pass through and taxed in the hands of Investor. Investor would pay tax on it as if it is directly invested. Receipt of income in NRE & NRO A/c will not change its taxability.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Anil Rego  |330 Answers  |Ask -

Financial Planner - Answered on Dec 17, 2020

I have invested in Alternative Investment Fund II (AIF ii). This AIF fund invests in real estate projects. My question is regarding tax treatment related to income from AIF II. Fund manager is currently deducting tax on gross basis on the income of the fund and not offsetting any expenses or management fees from the income.  What is going to be the treatment of such income in investors' hand? Can I offset management fees from the interest income of the fund? This management fee is charged by the fund for their services provided against the investment in the fund so I should be able to offset management fee and fund expenses from the income of the fund. Please advise Also, I want to check with you if i can offset the equalisation amount received with the equalisation amount paid. Currently the fund is not netting equalisation amount and deducting tax on equalisation amount received. Please provide details on tax treatment for AIF II funds. 
Ans: Any income earned by a SEBI registered category I and II AIF, is exempt from tax in the hands of AIF under section 10 (23FBA) of the Act. Such income shall be taxable directly in the hands of investors of the AIF under section 115UB of the Act.

  • Any income distributed by fund is not liable of DDT
  • Any income distributed by fund, TDS of 10% has to be deducted by fund u/s 194 LBB
  • In case of losses, loss will be not be allowed to pass through investor but would be carried forward at AIF level to be set off against income of future years
  • No expense setting off is available

Mihir Tanna  |727 Answers  |Ask -

Tax Expert - Answered on Nov 17, 2022

I am staying in India from around 4 years and working as a consultant in a Mexican Company (previously I was residing there, but now working from India) and getting income from Mexico. I am also paying tax on my abroad income I am getting in my NRO/ NRE account with Axis Bank. I want to know if I am an NRI or Resident Indian? Whether, I can open Mutual Fund account with NRI status or Resident India status? What will be the tax implications? Please guide me as I am not getting proper explanation.
Ans: Based on available details, you seem to be resident and ordinary resident for income tax purpose.

You can always check status at calculator provided at income tax website (external link)

Accordingly, you should inform bank about change in residential status immediately and change the type of account (NRO/NRE Account).

Also you have to open account as resident for MF and tax implications will arise at the time of transfer of mutual fund units. Tax rate will depend on type of fund (equity based or debt based) and period of holding.

Mutual funds whose portfolio’s equity exposure exceeds 65% are equity funds.

Equity funds held for 12 months or more are considered as long term, whereas it is 36 months in case of debt funds.

Short term equity funds are taxed at 15% and debt funds are taxed at slab rate.

Long term equity funds are taxed at 10% (if capital gains of exceeds Rs 1 lakh) and debt funds are taxed at 20% after indexation.

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Anu Krishna  |628 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 07, 2023

Hai i am 58 and retired my wife expired 30 months back i had two daughters who are working and yet to be married. very frequently these days i get dreams where i feel i am lost on my journey to somewhere or i am simply attending an office without any proper work or in my dreams i get one of my uncle (who is no more now passed away 7 years back )and his family members with whom i stayed during my studies for six years 40 years back. can you please analyse
Ans: Dear P,
I am truly sorry for your loss...

I am not a dreams analyst or someone who interprets dreams. I can only make a few guesses from what you have shared and suggest something that will guide you to be more positive and happier.
Dreams are a manifestation of deep desires, fears, dark memories, happier memories...dreams basically can indicate what lies deep within the subconscious mind. It's possible from what you share that 'LOSING' your wife has triggered many more situations where you had lost someone or you fear that you might lose someone or something. Maybe that explains the dream of you going to office without paper work...

Losing someone dear is a very difficult journey and it can show up in different ways. The only way can process grief is through time and an understanding that nothing is permanent in life. It's a momentum of give and take, having and losing...Maybe if you are able to consciously adapt and accept this, over time your subconscious mind starts to change and adapt as well. Again, I will reiterate: You certainly will still miss the person and feel sad; it's just that you will start to miss differently as the acceptance will allow you to graciously be in a space of understanding. Difficult BUT Possible!
Also, practice the Art of Gratitude. Being thankful for every little thing, lets you be in a positive space allowing you to be at peace more often.

These are only suggestions from what I could gather from the information that you have shared and not an analysis or interpretation of your dreams.

All the best!
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.


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