To enable ease of doing business, the taxation framework for Alternative Investment Funds (AIF) provide pass-through status to profits of the AIF (Category I and Category II) to the investors under which any income, barring business income, earned by AIFs would be exempt in the hands of such AIFs, and taxable directly in the hands of its investor(s). A huge taxation relief is accorded to non-resident investors of AIFs in India due to which overseas investment by AIFs of non-resident investors is not taxable in India and thereby leveraging the ease of doing business in India. If income of the fund includes business income, then such income is not permitted to be passed through to the Contributors and the fund pays tax on such income. Kratos ensures accurate tax computation and payments ensuring no tax penalty or non- compliance arise.