Vide notification no. 51/2015 dt. 25th Jun-15, TDS is not applicable on the payments of following nature in regard to investment fund:
any income of an investment fund other than the income chargeable under the head —”Profits and gains of business or profession”
“Investment fund” means any fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate which has been granted a certificate of registration as a Category I or a Category II Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);
Complete notification is given below:
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
New Delhi, the 25th June, 2015
No. 51 /2015
S.O. 1703(E).—In exercise of the powers conferred by sub-section (1F) of Section 197A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that no deduction of tax under Chapter XVII of the said Act shall be made on the payments of the nature specified in clause (23FBA) of Section 10 of the said Act received by any investment fund as defined in clause (a) of the Explanation 1 of section 115UB of the said Act.
2. This notification shall come into force from the date of its publication in the Official Gazette.
[F. No. 275/11/2015-IT (B)]
SANDEEP SINGH, Under Secy.