Taxation on REITs and InvITs | CA Shitij Gupta | Wealthy

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Taxation on REITs and InvITs | CA Shitij Gupta | Wealthy

Welcome to Wealthy’s Official YouTube Channel. In this explainer series, we talk about how income from REITs and InvITs are taxed. Real Estate Investment Trusts (REITs) invest a maximum portion of their money in real estate projects to have a regular flow of income for investors. Similarly, Infrastructure Investment Trusts (InvITs) invest in projects with a completed infrastructure where they can generate income from the same. With similar nature of operation, the taxes are also pretty much the same on both. If you buy certain units from both and sell it within 3 years, it will be considered as short term capital gains and you’ll have to pay 15% tax for both REITs and InvITs. But if you hold the units for more than 3 years, the gains on sale will be taxed at 10% as long term capital gains, after an initial exemption Rs 1,00,000. Apart from capital gains, these trusts also distribute the money the collect to investors. These are usually in the form of interest, dividends and repayment of debt. Interest earned through these units will get added to your interest income and will be taxed accordingly. In case of dividends, unit holders pay taxes if the trust holds the status of special tax concession. In the recent Union Budget, repayment of debt will be taxed and unit holders will pay the same.
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►►Shitij is a chartered accountant and also graduated from Delhi University. He is known for his extensive research in mutual funds and the stock market for the past 9-10 years.

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#taxation #wealthy #reits #InvIts
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Wealthy_in
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A better of option is to show in ITR filing

AmitSaini-lzmo
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In which schedule & section of Income Tax Return (ITR) we include the income received from the business trust (REIT or InvIT) ?

InspireMindsk
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Bakwas ise kuch nahi maloom. Bas time kharab kar raha hai.

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