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Union Budget 2015 ...

Union Budget 2015: REITs listing set to become easy, with smoother investor-exits

The union budget for 2015-2016 has eased the path for listing of Real Estate Investment Trusts (REITs) in India by allowing pass-through of taxes for rental income and rationalizing capital gains tax for the sponsors of a REIT.

The move is likely to boost REIT listing in the country, allowing faster and smoother exits to investors. "In respect of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (INViTs), it is proposed to provide that the sponsor will be given the same treatment on offloading of units at the time of listing as would have been available to him if he had offloaded his shareholding of special purpose vehicle (SPV) at the stage of direct listing. Further, the rental income arising from real estate assets directly held by the REIT is also proposed to be allowed to pass through and to be taxed in the hands of the unit holders of the REIT,”he said.