https://www.taxtmi.com/caselaws?id=794893 Section 10(23FBA) read with Section 115UB provides fund-level exemption and pass-through taxation for non-business income of Category I and Category II Alternative Investment Funds. The decisive classification issue is whether receipts constitute profits and gains of business or profession. Interest on debt securities, short-term capital gains from mutual fund units, and processing fee linked to NCD investments may retain investment-income character where the fund is SEBI-registered, treats holdings as investments, operates without trading leverage, and lacks business-trading indicators. Reclassification requires examination of intention, transaction frequency and volume, accounting treatment, funding, infrastructure, and overall conduct. The analysis also notes that Schedule PTI is for investors, and that applying provisions governing different fund regimes is inappropriate. en-us Mon, 01 Jun 2026 00:00:00 +0530 Tue, 14 Jul 2026 08:26:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794893 Section 10(23FBA) read with Section 115UB provides fund-level exemption and pass-through taxation for non-business income of Category I and Category II Alternative Investment Funds. The decisive classification issue is whether receipts constitute profits and gains of business or profession. Interest on debt securities, short-term capital gains from mutual fund units, and processing fee linked to NCD investments may retain investment-income character where the fund is SEBI-registered, treats holdings as investments, operates without trading leverage, and lacks business-trading indicators. Reclassification requires examination of intention, transaction frequency and volume, accounting treatment, funding, infrastructure, and overall conduct. The analysis also notes that Schedule PTI is for investors, and that applying provisions governing different fund regimes is inappropriate. Case-Laws Income Tax Mon, 01 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794893