Budget 2026 wishlist: AIF industry seeks level tax field for private credit, Category III funds

As the Union Budget 2026 draws closer, the alternative investment industry is intensifying its push for tax reforms to support the fast-growing private credit space. Industry body IVCA says current tax rules put Category III AIFs and private credit funds at a disadvantage, creating uncertainty and discouraging long-term capital. With assets in AIFs rising sharply, the sector wants clearer, fairer taxation to unlock the next phase of growth.