FAQ'S

Taxation

What are the tax implications on my investments?

All Investors (Individual/Non-Individual/Resident Indians/NRIs/OCIs etc.) in the Fractions shall be paying taxes on Income payouts and on capital appreciation.

Income Distribution: Income received from the asset is distributed as dividend/Interest on the Shares/CCDs as Fractions represent the Shares/CCDs of SPV holding the Asset. It is taxable in the hands of the investors at the applicable tax rates.

Capital Gains: Capital Gains is subject to capital gains tax at applicable rates. The applicable tax rate would depend on the period for which the shares and debentures were held (short-term vs long-term).

Unlisted Debentures (Individual/Non-Individual Investor(s)):

Income distributed through Interest Payment

Income Distributed through Interest Payment Tax Rate TDS Rate (If any)
Resident Indians Slab Rate 10%
NRI/OCIs Slab Rate 20% (plus appl. Surcharge & Cess)

Capital Gains on the Unlisted Debentures

STCG/LTCG on Unlisted Debentures Holding Period STCG/LTCG Tax Rate TDS Rate (If any)
Resident Indians Regardless of holding period Slab Rate NIL
NRI/OCIs Regardless of holding period Slab Rate 20% (plus appl. Surcharge & Cess)

Unlisted Common/Preference Shares (Individual/Non-Individual Investor(s)):

Income distributed through Dividend/Pref Dividend Payment

Income Distributed through Dividend Payment Tax Rate TDS Rate (If any)
Resident Indians Slab Rate 10%
NRI/OCIs Slab Rate 20% (plus appl. Surcharge & Cess)

Capital Gains on the Common/Pref Shares

STCG on Unlisted Common/Pref Shares Holding Period STCG Tax Rate TDS Rate (If any)
Resident Indians <=24 Months Slab Rate NIL
NRI/OCIs <=24 Months Slab Rate 20% (plus appl. Surcharge & Cess)
LTCG on Unlisted Common/Pref Shares Holding Period LTCG Tax Rate TDS Rate (If any)
Resident Indians >24 Months 12.5% NIL
NRI/OCIs >24 Months 12.5% 12.5% (plus appl. Surcharge & Cess)

The above gives you a glimpse of taxation on investments, however, we advise all investors to consult their Financial Advisors/Tax Advisors to seek individual specific tax advice.

Resident Indians can submit Form 15G/15H and NRIs can submit Tax residency Certificate(TRC) for reduced TDS. NRIs can explore benefits under the Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to the availability of a Tax residency Certificate.

Investment

Miscellaneous