AIF Industry Seeks Tax Reforms in Budget 2026

The alternative investment industry in India is asking the government to make changes to the tax rules in the upcoming Budget 2026.

They want private credit funds and Category III alternative investment funds (AIFs) to be taxed fairly.

Right now, these funds are taxed at a higher rate than other similar investment options, which makes it harder for them to grow.

The industry also wants clearer rules so that investors can understand how their money will be taxed.

A recent court decision has already helped by making the tax rules for Category III AIFs clearer.

The industry hopes that these changes will help more people invest in these funds and support important parts of the economy like small businesses and infrastructure.