[INDIA REAL ESTATE NEWS] Good morning everyone I am Rumi Dhar from Kama Group.
Here I have important INDIA real estate news to share with you which is as mentioned below.

Content: Finance Minister Nirmala Sitharaman in the Budget 2023 enhanced the scope of
taxation of real estate investment trusts (REITs) and infrastructure investment trusts (INvITs).
These will be taxed in the hands of unit holders from April 1, 2024 Industry stakeholders
explain the move.

Ajay Rotti, partner, Dhruva Advisors said, "REITs / InvITs are mandatorily required to
distribute their cash surplus upto certain limits as per SEBI regulations on quarterly basis.
The distributions generally consist of interest, dividend or repayment of debt. The law
provides for a pass through status or single stage taxation of the receipts. The receipts
are either taxed in the hands of the  Trust or the unit holders. Not both. However, repayment
of debt was not taxable in the hands of both. This double non-taxation has been addressed."


"The amendment proposed for REIT/InVIT related to distribution by manner of repayment
of debt to the unitholders is now covered under the ambit of taxation as other income (net
of cost of acquisition of the unit) which earlier was not captured  This was acting as an
incentive for may sponsors. Any foreign investor receiving the said distribution will be
taxed at 40% plus surcharge," said Hemal Mehta partner, Deloitte India

Gaurav Karnik, EY India added, taxability of return of capital in case of REITs would force a
relook at the distribution models of REITs.


        
Website:      https://realty.economictimes.indiatimes.com/news/industry/real-estate-budget-2023-double-non-taxation-on-reits-finally-addressed/97531007


KAMA GROUP
New Delhi
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