India's alternative investment fund (AIF) industry is advocating for tax parity for private credit funds and clearer regulations for Category III AIFs in the upcoming Union Budget. The Indian Venture and Alternate Capital Association (IVCA) argues that current tax laws disadvantage private credit funds compared to certain hybrid mutual funds, leading investors to favor tax-efficient options. IVCA seeks a level playing field across debt-like instruments, including AIFs, mutual funds, and bonds, with uniform tax rates.