What are the tax benefits of investing in GIFT City AIFs?
There are no taxes at the investor level for GIFT City-based AIFs. All categories of GIFT City funds are taxed at the fund level, that is the fund house pays taxes on capital gains, and the NAV investors receive is net of any taxes already paid. Additionally, Category III AIFs that invest in Indian equity mutual funds (rather than stocks directly) are given an exemption from capital gains tax at the fund level too, making qualifying structures entirely tax-efficient at both levels.