Investments in AIF

This query is : Open

Shweta (Querist)
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23 January 2025 Mr Amit and his two friends Rajesh and Rakesh are planning to invest in Alternative Investment Fund (AIF).
They are planning to invest this amount of Rs 1 crore.
The minimum requirement to invest in AIF is Rs 1 Crore (i.e. 1,00,00,000)
They decided to form “Joint Venture” and open a bank account in the name of “Joint Venture” and collect money invest in AIF.

Income Tax Treatment of " Joint Venture"
Query 1 - Under what head income of Capital gains, interest income and Dividend Income from investments will be taxed in the hands of “Joint Venture”?

Allowable Expenses for " Joint Venture"
Query 2 - Whether “Joint Venture” allowed expenses incurred in earning Capital gains, interest income and Dividend Income from investments?

Tax Treatment of Income Distribution to Members
Query 3 - Under what head distribution of income of Capital gains, interest income and Dividend Income will be taxed in the hands of Mr Amit, Rajesh and Rakesh?

Allowable Expenses for Members
Query 4 - Whether Mr Amit, Rajesh and Rakesh allowed expenses incurred in earning Capital gains, interest income and Dividend Income from investments of their “Joint Venture”?

Deduction under Section 54F for Capital Gains from Investments in AIF
Query 5 - Whether Mr Amit, Rajesh and Rakesh allowed exemption under section 54 F for Capital gains from investments in AIF?
Query 6 – Can the investment in AIF be made in the name of “Joint Venture”
Query 7- Can “Joint Venture” be named in the combined name of three investors i.e. Mr Amit, Rajesh and Rakesh