REIT yet to be a reality
REIT has not yet been a reality. The finance minister however has made a progressive announcement about the REITs or the Real Estate Investment Trust during his budget speech. He said that he believes in the work that still requires to be completed on the fine print and the state level issues that need to be sorted for the different REITs to become a reality.
The discussions along with the accounting professional law firm’s sponsors indicated the various hurdles that is required to overcome with respect to the present structure of the REIT. Also there is some stake holders that hit on the tax’s high interest rates and the negative spread that are the real hurdles. The Key announcements on the REIT’s will change it or not is questionable. The finance minister has also made a major announcement on the present Union Budget which will be directly affected under the present tax structure that will be set up by a REIT.
The Capital gain on the tax on transfer of interest in the SPV to the REIT will not change unless the sponsor monetises the investment. Mostly all the sponsors seek a onetime exemption in the capital gain of tax on transfer of assets.
Source; The Financial Express
