The Delhi High Court’s decision in Equity Intelligence AIF effectively addresses a decade-long tax conundrum for Category III AIFs by applying the doctrine of impossibility.

The amendment increases tax liability upon the startup and severely affects their dependency on seed funding during their initial rounds.

[Aman Gupta is a third-year student at NLU Jodhpur.] In 2015, the Reserve Bank of India (RBI) introduced a new kind of external...