Your AIF Tax Statement (Form No. 78) Explained
If you invest in a Category I or II fund, it must send you a yearly statement of your share of its income. Here is what it is and what to do with it.
What you receive, and when
A Category I or II fund (an “investment fund” under section 224) files Form No. 79 with the tax department by 15 June, and sends you Form No. 78 by 30 June, of the year after the tax year.
Because the fund’s income passes through to you, your share keeps its character: long-term gains, short-term gains, interest or dividends. Form No. 78 is how you know which is which. The statement is generated from the income-tax portal and verified by the fund.
What to do with it
- Report each kind of income separately in your return, at its own rate.
- Claim credit for the tax the fund deducted (10% for a resident) against your total tax.
- Pay any balance, or claim the refund, when you file.
Work out your balance with the TDS vs actual tax tool
Legal provisions and technical details
Rule 145 sets the forms and dates; section 224 makes the income pass through; section 393, Table Sl. 4(iii), sets the 10% deduction.
Rule 145(2): the due dates
(2) The statement to the Principal Commissioner or the Commissioner of Income-tax shall be furnished by the 15th June of the financial year succeeding the tax year during which the income is paid or credited or distributed and the statement to the recipient of income shall be furnished by the 30th June of the financial year succeeding the tax year during which the income is paid or credited or distributed.
Income-tax Rules, 2026 · text as notified, amendment footnote numbers omitted · checked 24 October 2026 · Official text
Section 224(1)
224. (1) Irrespective of anything contained in any other provision of this Act and subject to the provisions of this section, where a person, being a unit holder of an investment fund, out of investments made in the investment fund, receives any income or any income accrues or arises to him, such income shall be chargeable to income-tax in the same manner as if, it were the income accruing or arising to, or received by, such person, had the investments made by the investment fund been made directly by him.
Income-tax Act, 2025 as amended by the Finance Act, 2026 · text as notified, amendment footnote numbers omitted · checked 24 October 2026 · Official text
Section 393, Table Sl. 4(iii)
(iii) Any income, other than that proportion of income which is exempt under Schedule V (Table:
Income-tax Act, 2025 as amended by the Finance Act, 2026 · text as notified, amendment footnote numbers omitted · checked 24 October 2026 · Official text
Checked against the Income-tax Act, 2025 as amended by the Finance Act, 2026 on 24 October 2026. Official text of the Act
Meet the expert
CS Prashant Kumar
Company Secretary & Compliance Officer
Global Horizons Capital Advisors (IFSC) Private Limited — an IFSCA-licensed investment banker
Published in The Chartered Accountant (Jun 2025, Jan 2025, Mar 2024) and Chartered Secretary (Aug 2023)
Prashant Kumar is a seasoned Company Secretary and corporate governance strategist with more than 13 years of experience advising large corporates, promoter-led groups and global businesses on compliance, regulatory risk and board governance. In GIFT IFSC, the IFSCA regime is his day job rather than a research topic.