動画公開日：2023-02-03 21:05:27
This video is in Hindi and covers the following topics:
REIT & InVIT Tax Change: Government proposes taxation changes related to REITs, InVITs!
Tax Changes for REITs, InvITs
Tax बढ़ने की वजह से REIT/InvIT में भारी गिरावट
Golden Opportunity to invest?
Real Estate Investment Trust (REIT) is a tax-efficient vehicle that owns a portfolio of income-generating real estate assets
InvITs stands for Infrastructure Investment Trusts.
A REIT is created by a sponsor, who transfers ownership of assets to the trust in exchange for its units.
Think of it like a mutual fund, where money is pooled from investors. In return they were offered mutual fund units. Instead of shares of public companies, REIT units represent ownership of real estate assets.
Profits are generated in the form of dividends & capital appreciation.
REITs invest in the acquisition of immovable property, which yields rentals. Normally, such investments are not made directly by the trusts, but through special purpose vehicles (SPVs)
For companies, such tax may be the normal rate of 25% plus surcharge and cess, or the concessional rate of 22% plus surcharge and cess.
REITs must invest 80% of their assets in established and income-generating assets, according to Sebi regulations. REITs can currently only invest in commercial real estate and office premises
They must pay out 90 percent of their rental income in dividends.
The business trusts will need to review mode of their income distribution to unitholders as the Union Budget for 2023-24 has proposed to tax such distribution through repayment of debt.
The budget has proposed the distribution in the form of repayment of debt, taxable as other income, in the hands of unitholders. Distribution of income as dividend by these trusts continues to be exempted from taxation to unitholders.
Mindspace Business Parks REIT, on Monday, approved distribution of Rs 284.6 crore for the quarter ended December. Dividend, which is tax-exempt in the hand of unitholders, formed 91% of this while interest constituted 9%
Embassy REIT has announced a distribution of Rs 503 crore that included 45% of amortisation of SPV debt.
Brookfield India Real Estate Trust has not announced its December earnings so far.
Embassy REIT, along with other Industry participants, is currently evaluating next steps, including suitable representations given the to-date attractiveness and success of the product, especially to retail investors
