Cat 1 and Cat 2 AIFs investing in infra to get certainty on taxes

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Category I and Category II Alternative Investment Funds (AIFs) investing in infrastructure will get certainty of taxation on gains from securities, said Finance Minister Nirmala Sitharaman in her budget speech.

"To promote funding from sovereign wealth funds and pension funds to the infrastructure sector, I propose to extend the date of investment to five more years, she added."

Also, AIFs for startups have received commitments of more than Rs 91,000 crore till now, Sitharaman added. These are supported by the fund of funds set up with the government of India’s commitment of Rs 10,000 crore.

A new Fund of Funds (FoF) with expanded scope and a fresh contribution of another Rs 10,000 crore will be set up, Sitharaman added in her speech.

“This FoF is like an impetus to the entrepreneurial ecosystem. For larger growth and R&D , the startups are critical engines of economic transformation, job creation, and technological advancement. This will also create a sustainable startup environment where innovative ideas can flourish," said Brijesh Damodaran, Managing Partner, Auxano Capital.

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