AIFs may find limited relief in Sitharaman's latest round of announcements

Some investments see reprieve only for foreign investors, not AIFs

Alternative investment funds (AIFs) may find limited relief in Finance Minister Nirmala Sitharaman’s latest round of announcements. While foreign portfolio investors (FPIs) have had a comprehensive rollback of the surcharge, domestic AIFs, which faced similar taxation, will continue to pay up to 42.7 per cent on some investments. 

Sitharaman on Friday announced an ordinance by which certain domestic and foreign investors will get relief from a higher surcharge introduced in the July Budget. The Budget had raised the maximum effective tax that they would have to pay on their stock market investments to 42.7 per cent. 

FPIs have been net