General Questions

Co-investment is a method in which several investors come together to pool in money to make an investment. The income or returns generated from this investment is then shared by the investors in proportion to their investment amounts. For example - 3 investors invest Rs 20,000 each to buy a single motorcycle worth Rs 60,000. Each investor will receive 1/3rd i.e. 20,000/60,000 of the returns generated by this motorcycle over the investment period. It can hence be said that each investor has a 1/3rd or 33.3% ownership of the motorcycle i.e. a fractional ownership.

Yes, it is. However, at this point we would only be able to receive investment amounts from NRO accounts and not NRE accounts. This is because of the different compliance obligations from RBI. In the future, we will be able to receive investments from either account.

A valid PAN and an Aadhaar card are required.

 

For NRI investors, Passport is also applicable if Aadhaar card is not available.

As part of our due diligence process, we speak to the leasing partner’s key employees, investors and customers.

 

We also analyze financial information and conduct site visits to prevent any fraudulent investments. You can see a copy of all this information as well as see a signed copy of the lease term sheet from the leasing partner in the Assets page.

Our team undertakes the follows steps for each asset:

 

  1. Finding the right leasing partner and the asset that we can work with
  2. Negotiation with the leasing partner on the deal and contract terms
  3. Due diligence of leasing partner, management and financial performance
  4. If applicable, physical verification of the asset/ leasing partner’s office/ and deployment site
  5. Credit grading and review of the company by Grip team
  6. Due diligence check by an investment committee

 

Only once all these steps are successfully completed, the asset is listed on the Grip website.

We make sure that we have securities such as security deposits or post-dated cheques at the time of the investing into the assets.

 

Additionally, we have the ability to reclaim assets for selling or re-leasing. However, investors must note that while we have these safeguards in place, it does not guarantee 100% returns in case the Leasing partner does not fulfill the payment obligations.

We take the security of our platform and privacy of your data very seriously. Therefore, we have built an in-house system with the best security, that provides excellent privacy features.

 

All your data is hosted on a secured cloud network and sensitive client data is encrypted and stored on a 256 bit SHA encryption. We also refrain from sharing your data with any third party. For more details, please refer to our privacy policy.

Grip may delay or cancel funding the purchase of an asset if:

 

  1. it foresees a discrepancy in the accuracy of the information provided about the investment opportunity or by you as a user
  2. it is unable to secure the total funding required for the purchase of the asset
  3. proceeds to identify new investors, in case of non-commitment of the initial investors for the proposed purchase of the asset
  4. there is a delay in fund transfer by the investors

 

In case of cancellation, Grip will notify you of the same on the email address provided by you within 3 business days and refund any money committed by you within 7 business days. No cancellation charges would be levied on the investor by Grip.

IRR is a financial metric, used to calculate what returns can one expect from the investment opportunity. It takes into account cash flows throughout the investment and the time value of money.

 

What it means is that the INR 1000 that we hold today is worth more than the INR 1000 that we receive after 3 months taking the inflation into account.

 

Whereas, ROI is the absolute return on investment that doesn't hold the time value of money into consideration.

To understand further about IRR, you can refer our blog.

Any individual over the age of 18 years having a valid PAN and Aadhaar card can invest. Investment options provided on Grip offer advantages like 20%+ IRR, pre-agreed rental income and are based on ownership of an asset.

Grip also follows rigorous due diligence and risk mitigation processes before listing investment options. However investors must be aware that the returns are not guaranteed and hence investors' discretion is advised.

Note: If you are a corporate investor, please reach out to us at support@gripinvest.in for making investments.

It’s really simple, you can just click here to sign-up or sign-in and complete our simple KYC process. Then invest in any available opportunity listed on the Assets page after reviewing the details about the same.

Yes, we follow a rigorous due diligence process and we also make sure that the data is available to you when we go live with any opportunity.

Yes, you can invest in any number of assets. Diversification is always an advisable investment strategy and by offering you the ability to make smaller investments we encourage you to invest in more than one asset.

 

Keep an eye for Combo Deals which consist of multiple assets :)

We evaluate 3 major aspects for any potential corporate leasing partner:

 

  1. Financials: Analysis of annual reports and MIS for previous 12-18 months to understand scale, growth of business, unit economics, profitability patterns, current cash position and outstanding debts and loans;
  2. Corporate Profile: Professional backgrounds of Founders/ CXOs, shareholders, ongoing litigations as well as reference calls with key customers and other stakeholders;
  3. Business Performance: Review of key contracts, industry trends, asset and OEM quality to enable estimation of future performance for the lessee.

We work with reputed law firms that review and advise us on all our agreements. If you do, however, wish to rope in a legal advisor, we will be happy to answer any questions that you may have.

Any request for a refund is only applicable before the committed amount has been utilized for the purchase of the assets you had selected. In case you would like to seek a refund, please contact us at support@gripinvest.in and we shall update you on the status of the purchase of the asset. If the asset is yet to be purchased, the committed amount will be refunded to you within 15 business days of your request.

Grip's leasing structure falls under the purview of the Ministry of Corporate Affairs, currently, more than 3000+ unique investors have already invested with our track record of 100% on time-payment.

Yes, Grip screens potential portfolio investments and adheres to rental basis investment and ensures that all contracts, processes, and decisions are taken in compliance with Shariah.

Co-investment is a method in which several investors come together to pool in money to make an investment. The income or returns generated from this investment is then shared by the investors in proportion to their investment amounts. For example - 3 investors invest Rs 20,000 each to buy a single motorcycle worth Rs 60,000. Each investor will receive 1/3rd i.e. 20,000/60,000 of the returns generated by this motorcycle over the investment period. It can hence be said that each investor has a 1/3rd or 33.3% ownership of the motorcycle i.e. a fractional ownership.

Any individual over the age of 18 years having a valid PAN and Aadhaar card can invest. Investment options provided on Grip offer advantages like 20%+ IRR, pre-agreed rental income and are based on ownership of an asset.

Grip also follows rigorous due diligence and risk mitigation processes before listing investment options. However investors must be aware that the returns are not guaranteed and hence investors' discretion is advised.

Note: If you are a corporate investor, please reach out to us at support@gripinvest.in for making investments.

Yes, it is. However, at this point we would only be able to receive investment amounts from NRO accounts and not NRE accounts. This is because of the different compliance obligations from RBI. In the future, we will be able to receive investments from either account.

It’s really simple, you can just click here to sign-up or sign-in and complete our simple KYC process. Then invest in any available opportunity listed on the Assets page after reviewing the details about the same.

A valid PAN and an Aadhaar card are required.

 

For NRI investors, Passport is also applicable if Aadhaar card is not available.

Yes, we follow a rigorous due diligence process and we also make sure that the data is available to you when we go live with any opportunity.

As part of our due diligence process, we speak to the leasing partner’s key employees, investors and customers.

 

We also analyze financial information and conduct site visits to prevent any fraudulent investments. You can see a copy of all this information as well as see a signed copy of the lease term sheet from the leasing partner in the Assets page.

Yes, you can invest in any number of assets. Diversification is always an advisable investment strategy and by offering you the ability to make smaller investments we encourage you to invest in more than one asset.

 

Keep an eye for Combo Deals which consist of multiple assets :)

Our team undertakes the follows steps for each asset:

 

  1. Finding the right leasing partner and the asset that we can work with
  2. Negotiation with the leasing partner on the deal and contract terms
  3. Due diligence of leasing partner, management and financial performance
  4. If applicable, physical verification of the asset/ leasing partner’s office/ and deployment site
  5. Credit grading and review of the company by Grip team
  6. Due diligence check by an investment committee

 

Only once all these steps are successfully completed, the asset is listed on the Grip website.

We evaluate 3 major aspects for any potential corporate leasing partner:

 

  1. Financials: Analysis of annual reports and MIS for previous 12-18 months to understand scale, growth of business, unit economics, profitability patterns, current cash position and outstanding debts and loans;
  2. Corporate Profile: Professional backgrounds of Founders/ CXOs, shareholders, ongoing litigations as well as reference calls with key customers and other stakeholders;
  3. Business Performance: Review of key contracts, industry trends, asset and OEM quality to enable estimation of future performance for the lessee.

We make sure that we have securities such as security deposits or post-dated cheques at the time of the investing into the assets.

 

Additionally, we have the ability to reclaim assets for selling or re-leasing. However, investors must note that while we have these safeguards in place, it does not guarantee 100% returns in case the Leasing partner does not fulfill the payment obligations.

We work with reputed law firms that review and advise us on all our agreements. If you do, however, wish to rope in a legal advisor, we will be happy to answer any questions that you may have.

We take the security of our platform and privacy of your data very seriously. Therefore, we have built an in-house system with the best security, that provides excellent privacy features.

 

All your data is hosted on a secured cloud network and sensitive client data is encrypted and stored on a 256 bit SHA encryption. We also refrain from sharing your data with any third party. For more details, please refer to our privacy policy.

Any request for a refund is only applicable before the committed amount has been utilized for the purchase of the assets you had selected. In case you would like to seek a refund, please contact us at support@gripinvest.in and we shall update you on the status of the purchase of the asset. If the asset is yet to be purchased, the committed amount will be refunded to you within 15 business days of your request.

Grip may delay or cancel funding the purchase of an asset if:

 

  1. it foresees a discrepancy in the accuracy of the information provided about the investment opportunity or by you as a user
  2. it is unable to secure the total funding required for the purchase of the asset
  3. proceeds to identify new investors, in case of non-commitment of the initial investors for the proposed purchase of the asset
  4. there is a delay in fund transfer by the investors

 

In case of cancellation, Grip will notify you of the same on the email address provided by you within 3 business days and refund any money committed by you within 7 business days. No cancellation charges would be levied on the investor by Grip.

Grip's leasing structure falls under the purview of the Ministry of Corporate Affairs, currently, more than 3000+ unique investors have already invested with our track record of 100% on time-payment.

IRR is a financial metric, used to calculate what returns can one expect from the investment opportunity. It takes into account cash flows throughout the investment and the time value of money.

 

What it means is that the INR 1000 that we hold today is worth more than the INR 1000 that we receive after 3 months taking the inflation into account.

 

Whereas, ROI is the absolute return on investment that doesn't hold the time value of money into consideration.

To understand further about IRR, you can refer our blog.

Yes, Grip screens potential portfolio investments and adheres to rental basis investment and ensures that all contracts, processes, and decisions are taken in compliance with Shariah.

Pre Investment

To provide you with maximum flexibility in choosing an investment amount, we aim to keep the minimum investment amount as low as possible.

 

However, the minimum amount for any investment opportunity is never lower than INR 20,000. This amount varies from asset to asset and you can check the asset’s page for more details.

If for some reason an asset on our platform doesn't meet its funding target, any funds that have been committed by investors will be reimbursed to their registered bank account within 10 working days with 1% additional amount.

Under the Partnership Agreement signed by you at the time of investment, the day-to-day responsibilities of the LLP are assigned to a Designated Partner. Furthermore, a partner to a LLP is not personally liable for any wrongful act of LLP. In fact, it is only the LLP that can be held liable. A partner will however remain personally liable for his or her personal wrong doings and omissions, if any.

 

There are no general legal provisions that restrict you as a partner from seeking any employment opportunities.

Review available investment opportunities on www.gripinvest.in, including financial performance, leasing terms and return expectations for mentioned deals.

 

Complete e-KYC and finalize the investment amount by transferring via our payment gateway partner, Cashfree.

 

Further, read and digitally sign the investment document. Once the deal is fully financed, you will start receiving monthly payments in 30 to 45 days.

We charge a total of 2.0% management fee on every repayment you receive, 1.0% towards expenses related to management of the SPV and 1.0% for our fees. The investment options listings are always shown post deduction of this fee.

 

We do not take an upfront fee on the invested amount. Our fee is only on the income earned from the asset.

We believe in 100% transparency to build trust with our investors. All documents, lease agreements etc. are available on the Asset details page and will also be available in the portfolio section after investment.

 

Additionally, detailed monthly reports are also made available through the emails and in the Portfolio section.

Most of the time it will be monthly. However it may vary from asset to asset and hence you are requested to check the Assets page for specific details.

For each investment to purchase and lease an asset, a Specific Purpose Vehicle (SPV) in the form of a Limited Liability Partnership is created in which investors contribute their funds.

 

As an investor, you will become a Partner to this LLP and represent your investment. Your partnership stake in the LLP will represent the amount of investment made by you. We assume responsibility for oversight, reporting, and management of this SPV on behalf of the investors.

 

The cost associated with managing this SPV is already covered in the Grip fee.

We respect the privacy of each investor on our platform. You will only be able to see the names of other Partners of the SPV once the full investment process is completed. No other details about the Partner will be shared with other investors. Please see our Privacy Policy for more details.

Each investor must sign a Partnership Deed relating to the SPV and a Risk Disclosure agreement.

The lease agreement is available on the ‘Asset Details’ page, before you make an investment. Additionally, investors can access all documents related to an asset in their ‘Portfolio’ section at any given time.

No, the returns are contractually agreed with the lessee but not guaranteed. All returns mentioned in a deal are projected returns, based on the lease terms agreed with the leasing partner. They are mentioned in the lease agreement and are advised to be read before you decide to invest.

To provide you with maximum flexibility in choosing an investment amount, we aim to keep the minimum investment amount as low as possible.

 

However, the minimum amount for any investment opportunity is never lower than INR 20,000. This amount varies from asset to asset and you can check the asset’s page for more details.

Most of the time it will be monthly. However it may vary from asset to asset and hence you are requested to check the Assets page for specific details.

If for some reason an asset on our platform doesn't meet its funding target, any funds that have been committed by investors will be reimbursed to their registered bank account within 10 working days with 1% additional amount.

For each investment to purchase and lease an asset, a Specific Purpose Vehicle (SPV) in the form of a Limited Liability Partnership is created in which investors contribute their funds.

 

As an investor, you will become a Partner to this LLP and represent your investment. Your partnership stake in the LLP will represent the amount of investment made by you. We assume responsibility for oversight, reporting, and management of this SPV on behalf of the investors.

 

The cost associated with managing this SPV is already covered in the Grip fee.

Under the Partnership Agreement signed by you at the time of investment, the day-to-day responsibilities of the LLP are assigned to a Designated Partner. Furthermore, a partner to a LLP is not personally liable for any wrongful act of LLP. In fact, it is only the LLP that can be held liable. A partner will however remain personally liable for his or her personal wrong doings and omissions, if any.

 

There are no general legal provisions that restrict you as a partner from seeking any employment opportunities.

We respect the privacy of each investor on our platform. You will only be able to see the names of other Partners of the SPV once the full investment process is completed. No other details about the Partner will be shared with other investors. Please see our Privacy Policy for more details.

Review available investment opportunities on www.gripinvest.in, including financial performance, leasing terms and return expectations for mentioned deals.

 

Complete e-KYC and finalize the investment amount by transferring via our payment gateway partner, Cashfree.

 

Further, read and digitally sign the investment document. Once the deal is fully financed, you will start receiving monthly payments in 30 to 45 days.

Each investor must sign a Partnership Deed relating to the SPV and a Risk Disclosure agreement.

We charge a total of 2.0% management fee on every repayment you receive, 1.0% towards expenses related to management of the SPV and 1.0% for our fees. The investment options listings are always shown post deduction of this fee.

 

We do not take an upfront fee on the invested amount. Our fee is only on the income earned from the asset.

The lease agreement is available on the ‘Asset Details’ page, before you make an investment. Additionally, investors can access all documents related to an asset in their ‘Portfolio’ section at any given time.

We believe in 100% transparency to build trust with our investors. All documents, lease agreements etc. are available on the Asset details page and will also be available in the portfolio section after investment.

 

Additionally, detailed monthly reports are also made available through the emails and in the Portfolio section.

No, the returns are contractually agreed with the lessee but not guaranteed. All returns mentioned in a deal are projected returns, based on the lease terms agreed with the leasing partner. They are mentioned in the lease agreement and are advised to be read before you decide to invest.

Post Investment

The process of investment is completed as soon as the asset is fully funded by co-investors. A time frame of 10 days is targeted to ensure that the asset receives complete funding.

Your returns will be credited to your registered bank account.

It is typically between 18-48 months. The leasing term will vary from asset to asset so you can check that on the Asset Page.

The responsibility for managing the asset in most cases lies with the leasing partner. In certain cases, our team manages the asset.

 

You will not be required to be involved in maintaining the asset and we do not anticipate you requiring to incur any additional expenses towards maintenance of the asset.

As a partner you would need to file ITR3 in addition to your current income tax filing. Our aim is to make this filing as smooth for you as possible and we will be incorporating a section on our website where we can provide you all details or even a completed form. However, this is work in progress at our end given that filing would be required only at the end of the financial year. We will keep you updated about the same. We would submit LLP’s ITR5 and would make it available to you for reference.

We take nominee details while registering you on the platform in the process of e-KYC. In a case, when the investor is not available for redeems, the nominee receives the returns.

Yes, completing KYC is mandatory to eSign your investment agreement as we pick data from your verified KYC to populate in the investment agreement.

Returns start after 30 to 45 days of receiving 100% funding. Returns are typically distributed to investors once a month. However, there may be investment options with different payment cycles. However, this would be mentioned in detail on the ‘Asset Details’ Page.

The returns provided to you are on a post-tax basis. Tax deductions on account of depreciation, GST input tax credit etc. are already considered at the SPV creation stage, to design an optimum structure for you.

Currently you can not exit investment before the lease term is over. We are working on adding new features that will provide you with early exit options.

All payments that you receive are made post-tax and hence, there are no additional tax implications for you. The explanation would be that return of capital or distribution of profits from a LLP are tax exempt in the hands of the partner of the LLP.

You will be kept updated on the performance and returns received via monthly reports made available through emails.

 

You can also log-into the ‘Portfolio’ page to see updated information about your investment.

We give investors three options to eSign their investment agreement.

 

First, eSign at the success page immediately after making an investment by clicking “eSign agreement” button below the congratulations message or second, eSign from the portfolio page by clicking “eSign agreement” in the bottom right of the asset’s investment card or third, eSign from the notifications bell icon in the top right of your asset’s page.

When the deal is live, the investor’s % (read: percentage) share in the LLP and the associated profit sharing ratio cannot be finalized as the total number of investors and total investment size keeps changing. All of the schedules will be complete when we share the MCA approved document to you ~5 weeks after the close of the deal.

The process of investment is completed as soon as the asset is fully funded by co-investors. A time frame of 10 days is targeted to ensure that the asset receives complete funding.

Returns start after 30 to 45 days of receiving 100% funding. Returns are typically distributed to investors once a month. However, there may be investment options with different payment cycles. However, this would be mentioned in detail on the ‘Asset Details’ Page.

Your returns will be credited to your registered bank account.

The returns provided to you are on a post-tax basis. Tax deductions on account of depreciation, GST input tax credit etc. are already considered at the SPV creation stage, to design an optimum structure for you.

It is typically between 18-48 months. The leasing term will vary from asset to asset so you can check that on the Asset Page.

Currently you can not exit investment before the lease term is over. We are working on adding new features that will provide you with early exit options.

The responsibility for managing the asset in most cases lies with the leasing partner. In certain cases, our team manages the asset.

 

You will not be required to be involved in maintaining the asset and we do not anticipate you requiring to incur any additional expenses towards maintenance of the asset.

All payments that you receive are made post-tax and hence, there are no additional tax implications for you. The explanation would be that return of capital or distribution of profits from a LLP are tax exempt in the hands of the partner of the LLP.

As a partner you would need to file ITR3 in addition to your current income tax filing. Our aim is to make this filing as smooth for you as possible and we will be incorporating a section on our website where we can provide you all details or even a completed form. However, this is work in progress at our end given that filing would be required only at the end of the financial year. We will keep you updated about the same. We would submit LLP’s ITR5 and would make it available to you for reference.

You will be kept updated on the performance and returns received via monthly reports made available through emails.

 

You can also log-into the ‘Portfolio’ page to see updated information about your investment.

We take nominee details while registering you on the platform in the process of e-KYC. In a case, when the investor is not available for redeems, the nominee receives the returns.

We give investors three options to eSign their investment agreement.

 

First, eSign at the success page immediately after making an investment by clicking “eSign agreement” button below the congratulations message or second, eSign from the portfolio page by clicking “eSign agreement” in the bottom right of the asset’s investment card or third, eSign from the notifications bell icon in the top right of your asset’s page.

Yes, completing KYC is mandatory to eSign your investment agreement as we pick data from your verified KYC to populate in the investment agreement.

When the deal is live, the investor’s % (read: percentage) share in the LLP and the associated profit sharing ratio cannot be finalized as the total number of investors and total investment size keeps changing. All of the schedules will be complete when we share the MCA approved document to you ~5 weeks after the close of the deal.

Income Tax Return Questions

Investors in leasing transactions via Grip become partners in a Limited Liability Partnership (LLP). Any person that earns income/profit by being a partner in a LLP is required to file ITR-3.

The financial year in India begins on the 1st of April and ends on the 31st of March next year. So any income earned/accrued between 1st April 2021 to 31st March 2022, needs to have the income tax returns filed on or before 31st July 2022.

  1. The process for filing ITR-3 is the same as other ITRs. The only difference is the form being used. A detailed step-by-step process is mentioned in this Link. Specific inputs related to ITR-3 are mentioned below.
  2. Once you have downloaded the ITR-3 excel/xml format from the income tax e-filing portal (Income Tax Portal), fill the information in the ITR-3 on the basis of the Grip Investment Declaration (GID) that will be provided to you by Grip. If you have earned any other income, disclose it in the relevant tabs in ITR-3.
  3. Validate all tabs of the ITR-3 form and calculate the tax. The tax from investments via Grip will be nil as profits earned from a LLP are tax exempt.
  4. Submit the ITR on the income tax e-filing portal and e-verify it.

The decision of filing the ITR should be taken by each and every individual investor. We at Grip will ensure that the process of filing ITR-3 will be as easy as possible by providing you with the Grip Investment Declaration (GID) that reflects your investment via Grip. If this is the only investment that falls under ITR-3, then you can use this to prepare your ITR-3. In case you have other investments, you can use this document in conjunction with the returns from other investments to prepare ITR-3. If you are unsure of filing ITR3 on your own, we recommend that you take professional help to file income tax returns.

If you don’t have a preferred partner, we recommend you to work with Felix Advisory. Felix understands Grip’s business and can help you file income tax returns. You can contact them at kushal@felixadvisory.com or 9999617347.

We will be sharing the Grip Investment Declaration (GID) in the last week of May 2021. It will be uploaded in your portfolio page on www.gripinvest.in and you will be notified of the same through an email. Financial year for every LLP closes on 31 March 2021 and the accounting books for the LLP’s will be closed in the 8 weeks that follow. Because of the nature of the processes involved, GID can be provided only at the end of May 2021.

Yes, the GID is similar to the ITR 3 format and it will use the same language and terminology as used in an ITR-3. Your CA will be able to use the GID to file your tax returns.

No, income tax paid by LLP is not eligible for refund in the hands of investors.

The process of filing Income tax will remain the same for a NRI investor as it is for a India resident investor.

As a partner in a LLP, it is mandatory for you to file income tax returns, even if you are earning post tax returns. While there will be no additional tax liability for your returns from investments via Grip, it is mandatory to disclose all sources of income.

As it is the responsibility of investors to file their own income tax returns, Grip is not authorized to do the ITR filing for investors.

In recent years, the government has released new ITR forms and the instructions to file ITR in the month of June i.e. nearly 2 months after the closure of the financial year. Any changes in the ITR form or process can be expected around June 2021.

There are two types of investment that fall under ITR-3:

 

  1. Quoted Investment (Can be easily accessed from Consolidate Account Statement - CAS) - Examples include mutual funds, Govt. bonds and any long term investments in the money market.
  2. Unquoted investment (Can only be known to an individual) - Anything not quoted is an unquoted investment. Examples include investments made in Grip or any other private organizations.

 

If you have incomes in any of the above categories then you need to include them as part of your ITR-3.

Grip Investment Declaration is a document that summarizes your investment and returns for transactions via Grip for FY 2020-21. The GID will have relevant schedules which are related to your investments via Grip and those schedules will be similar to the schedules in ITR-3. The document will be provided to you in a PDF format. Click here to view the GID.

There will be only one GID issued per investor for a financial year. This document will summarize all the investments made by the investor through Grip.

The post tax income that you are earning from LLP is not taxable. However, there are cases where Grip pays interest to the investors due to additional time taken to complete 100% financing of a deal and this interest earned is taxable and needs to be declared in ITR-3. Rest assured, income earned as interest will be part of the GID.

No, the assets belong to the LLP’s. Any other individual or corporate bodies won’t be able to leverage the depreciation for their tax benefit. The taxes are paid by the LLP after availing the benefit of depreciation on assets, and hence the effective tax on the investor already accounts for the benefit from this depreciation.

Investors in leasing transactions via Grip become partners in a Limited Liability Partnership (LLP). Any person that earns income/profit by being a partner in a LLP is required to file ITR-3.

As a partner in a LLP, it is mandatory for you to file income tax returns, even if you are earning post tax returns. While there will be no additional tax liability for your returns from investments via Grip, it is mandatory to disclose all sources of income.

The financial year in India begins on the 1st of April and ends on the 31st of March next year. So any income earned/accrued between 1st April 2021 to 31st March 2022, needs to have the income tax returns filed on or before 31st July 2022.

As it is the responsibility of investors to file their own income tax returns, Grip is not authorized to do the ITR filing for investors.

  1. The process for filing ITR-3 is the same as other ITRs. The only difference is the form being used. A detailed step-by-step process is mentioned in this Link. Specific inputs related to ITR-3 are mentioned below.
  2. Once you have downloaded the ITR-3 excel/xml format from the income tax e-filing portal (Income Tax Portal), fill the information in the ITR-3 on the basis of the Grip Investment Declaration (GID) that will be provided to you by Grip. If you have earned any other income, disclose it in the relevant tabs in ITR-3.
  3. Validate all tabs of the ITR-3 form and calculate the tax. The tax from investments via Grip will be nil as profits earned from a LLP are tax exempt.
  4. Submit the ITR on the income tax e-filing portal and e-verify it.

In recent years, the government has released new ITR forms and the instructions to file ITR in the month of June i.e. nearly 2 months after the closure of the financial year. Any changes in the ITR form or process can be expected around June 2021.

The decision of filing the ITR should be taken by each and every individual investor. We at Grip will ensure that the process of filing ITR-3 will be as easy as possible by providing you with the Grip Investment Declaration (GID) that reflects your investment via Grip. If this is the only investment that falls under ITR-3, then you can use this to prepare your ITR-3. In case you have other investments, you can use this document in conjunction with the returns from other investments to prepare ITR-3. If you are unsure of filing ITR3 on your own, we recommend that you take professional help to file income tax returns.

There are two types of investment that fall under ITR-3:

 

  1. Quoted Investment (Can be easily accessed from Consolidate Account Statement - CAS) - Examples include mutual funds, Govt. bonds and any long term investments in the money market.
  2. Unquoted investment (Can only be known to an individual) - Anything not quoted is an unquoted investment. Examples include investments made in Grip or any other private organizations.

 

If you have incomes in any of the above categories then you need to include them as part of your ITR-3.

If you don’t have a preferred partner, we recommend you to work with Felix Advisory. Felix understands Grip’s business and can help you file income tax returns. You can contact them at kushal@felixadvisory.com or 9999617347.

Grip Investment Declaration is a document that summarizes your investment and returns for transactions via Grip for FY 2020-21. The GID will have relevant schedules which are related to your investments via Grip and those schedules will be similar to the schedules in ITR-3. The document will be provided to you in a PDF format. Click here to view the GID.

We will be sharing the Grip Investment Declaration (GID) in the last week of May 2021. It will be uploaded in your portfolio page on www.gripinvest.in and you will be notified of the same through an email. Financial year for every LLP closes on 31 March 2021 and the accounting books for the LLP’s will be closed in the 8 weeks that follow. Because of the nature of the processes involved, GID can be provided only at the end of May 2021.

There will be only one GID issued per investor for a financial year. This document will summarize all the investments made by the investor through Grip.

Yes, the GID is similar to the ITR 3 format and it will use the same language and terminology as used in an ITR-3. Your CA will be able to use the GID to file your tax returns.

The post tax income that you are earning from LLP is not taxable. However, there are cases where Grip pays interest to the investors due to additional time taken to complete 100% financing of a deal and this interest earned is taxable and needs to be declared in ITR-3. Rest assured, income earned as interest will be part of the GID.

No, income tax paid by LLP is not eligible for refund in the hands of investors.

No, the assets belong to the LLP’s. Any other individual or corporate bodies won’t be able to leverage the depreciation for their tax benefit. The taxes are paid by the LLP after availing the benefit of depreciation on assets, and hence the effective tax on the investor already accounts for the benefit from this depreciation.

The process of filing Income tax will remain the same for a NRI investor as it is for a India resident investor.

Vault Questions

Vault is a virtual bank account service provided to you in partnership with Yes Bank. All of your investments and returns via Grip will now be enabled through the Vault providing you with greater visibility and control over your transactions.

Your Vault account will now:


1.Receive all the returns from your investments via Grip
2.Receive refunds/cancellation amounts from any investment made by you
3.Enable you to add money to the Vault using NEFT/ RTGS/ IMPS or UPI or Netbanking
4.Allow you to use the funds available in your Vault for making new investments seamlessly
5.Allow you to instantly withdraw any available funds to your registered bank account

 

To provide security of your funds, Vault is established as an escrow account by Yes Bank. Without your authorization no funds can be withdrawn and hence there is no chance of misappropriation of your money.