Q1. What are upfront charges deducted from Capital contribution?

A. 3 components – Setup fees (if not waived) + service tax thereon; management fees + service tax; operating expense. The net amount is invested in NCDs. Such upfront deductions are mentioned in PPM and done in consultation with the trustee. We can send you the exact amount and period for which it is deducted.


Please note that in Arka AIF, setup fees were charged proportionately on each contribution. We shall deduct full setup fees from the investor’s first contribution.

Q2. How pre-allotment income calculated?

A. The contribution received from investors is invested in liquid fund schemes till the allotment of units. Such income, from the date of receipt of money till allotment of units, is paid to investors.

Post allotment of units, investors get a proportionate share of the fund’s income.

Q3. How is income calculated/distributed in fund?

The total income earned by the fund is distributed to all investors proportionately based on their net investable surplus (net investable surplus = contribution minus upfront amount deducted as explained above) and actual number of days the same was invested in the fund.

Q4. How are management fees, operating expenses, TDS calculated?
Management fee is calculated on a daily basis. Operating expenses are charged based on actuals subject to a maximum of 0.25% p.a. of contribution amount. TDS is calculated @10.3% of ‘net income’. Net income is gross income minus management fee minus operating expense for that period. This net income figure appears in 26AS, Form 16A, Form 64C etc.
Q5. Why management fees and operating expenses are not deducted from quarterly payout?
A. Since we have already set aside or deducted management fee and operating expenses for ‘a period’, we shall not deduct that again from quarterly payouts for that period. Post that, we shall deduct management fees and operating expenses from payouts.
Q6. When TDS certificates (Form 16A) shall be provided?
TDS deducted betweenCertificate to be provided on or before
1st April – 30th June15th Aug
1st June – 30th September15th Nov
1st October – 31st December
15th Feb
1st January – 31st March15th June
We shall send TDS certificates to each region on or before above mentioned dates.
Q7. What is Form 64C and when it shall be provided?
A. Form 64C is a format provided by IT dept in which AIF needs to provide the details/nature of the income paid or credited to its unit holder. It needs to be provided by 1st of April of the financial year following the previous year in which income is paid/ credited.
Q8. What is 26AS? Why TDS deducted is not reflecting in 26AS?
A. 26AS is a form in which one can see TDS deducted against their income/PAN. It can be accessed only by that person. In our case, investors can see TDS deducted against their income from the fund. Such an amount appears only after ‘TDS return’ is filed by the fund. TDS returns are filed every quarter by the fund. Following are the dates for same –
PeriodTDS deposited
by fund
Last date for TDS
1st April – 30th June Every month 15th July
1st July – 30th SeptemberEvery month 15th Oct
1st October – 31st December
Every month 15th Jan
1st January – 31st MarchEvery month 15th May
It shall reflect in 26AS within 5-7 working days from the date of filing of the TDS return.
Q9. Will income paid/credited numbers in 26AS, Form 16A (TDS certificates), Form 64C shall match?
A. Yes. In Arka AIF, we had deducted TDS @10% and later recovered the remaining 0.3% TDS from February 2022 payout based on notice from the IT department. Since returns of Q2 (Jul-Sep) and Q3 (Oct-Dec) were already filed by that time, we had to revise the same which lead to passing necessary correction entries – hence we suggest cross-checking the total figures of each quarter i.e. Q2, Q3, and Q4 which should match in all statements. Also, investors may have old statements (when 10% TDS was deducted) which may not match. Hence latest/updated statements should be checked.
Q10. When statement of accounts and/or NAVs are provided?

SoAs shall be provided for the following dates only –

  1. End of financial quarter (31st March, 30th June, 30th September, 31st December)
  2. Payout dates (10th May, 10th Aug, 10th Nov, 10th Feb for Arka AIF; other funds – based on their investments)
  3. Allotment dates (Arka AIF – fund closed so not applicable now; other funds – as per announcement)


SoA generation and quality checks take some time – so they shall be typically available within 2-4 working days.