REITs and InvITs
REITs might have to face some turbulent times before being fruitfully launched in India, due to the current tax rules, which make it an unattractive and stringent affair. The rules announced by the Indian Government for setting up Real Estate Investment Trusts (REITs), which may spur $20 billion of property development, will not see the [...] Continue Reading »
REITs are not exactly the real estate equivalent of equity mutual funds. Dhirendra Kumar explains what they are and why they hold the promise of a regular, inflation-adjusted income. After being discussed for a few years, Real Estate Investment Trusts (REITs) are finally getting off the ground. In this year’s Budget, Finance Minister Arun Jaitley [...] Continue Reading »
REITs were announced with a lot of pomp and show during the union budget presented by the Finance Minister Arun Jaitley on July 10. HDFC Chairman Deepak Parekh has urged the Finance Ministry to come up with more clarification on the taxation front for the REITs to be successful. Parekh termed the budget announcement on [...] Continue Reading »
The Government is expected to give tax benefits to listed Real Estate and Infrastructure Investment Trusts. As according to sources any capital gains tax on units of InvITs would be levied only at the time of ultimate disposal of the units of the sponsor under the new norms. Although the sponsor would not be entitled [...] Continue Reading »
The REIT (Real Estate Investment Trusts) norms will be more attractive now and the capital markets regulator SEBI (Securities and Exchange Board of India) has agreed to incorporate the industry suggestions. The minimum asset size will be reduced to Rs 500 crore, and foreign investors at IPO and later stages will be allowed. At the [...] Continue Reading »
