Trends in Trust Taxation for Investment Vehicles India

[CA. A V Seshadrinathan]

Investment trusts are facing challenges like

 

A. Concept of Investment gains being disputed as Income from being in the business of Investment

B. TDS mismatches issued by the AMC and the Fund

C. Pass through of Tax Credits  from Payers of Income via the Trust to the benificiaries

D. Application of avoidance rules to transfers made by collective vehicles domiciled internationally and investing into India

E. Concept of Substance, presence, control of investment decision of investment vehicles outside of India investing in India

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Trust taxation for investment vehicles faces disputes over classification of investment gains and cross-border substance implications.
Trust taxation for investment vehicles in India centers on whether receipts are classified as investment gains or business income, the resulting tax consequences, TDS mismatches between asset managers and funds, pass-through of tax credits to beneficiaries, and international issues including application of anti-avoidance rules and evaluation of substance, presence, and control for offshore vehicles investing into India.