Central Board of Direct Taxes vide Circular dated the 12th July 2023 has issued clarification regarding taxability of income earned by a non-resident investor from off-shore investments in investment fund routed through an Alternative Investment Fund.
The income tax exemption under section 115UB shall apply only to income earned by a non-resident investor from off-shore investments in investment fund routed through Category I or Category II AlFs regulated by Securities and Exchange Board of India (SEBI) or International Financial Services Centers Authority (IFSCÅ).
