India: Requirement for alternative investment funds to list investor names in trust deed is unlawful (High Court decision)

CBDT Circular No. 13/2014 held unlawful because inconsistent with SEBI regulations.

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August 1, 2025

The Delhi High Court held that Central Board of Direct Taxes (CBDT) Circular No. 13/2014, which required alternative investment funds to list investor names and their beneficial interests in the original trust deed for “determinate trust” classification under the Income-tax Act, 1961, was inconsistent with Securities and Exchange Board of India (SEBI) regulations for alternative investment funds and therefore unlawful.

Thus, the taxpayer, a Category III alternative investment fund registered with the SEBI, could not be treated as an “indeterminate trust” subject to tax at the maximum marginal rate.

The case is: Equity Intelligence AIF Trust v. CBDT & Anr.

Read a July 2025 report prepared by the KPMG member firm in India

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