To boost investment in the infrastructure and real estate sector, the Finance Minister in the budget proposed to accord a pass-through status to unlisted REITs and InvITs.
Union Finance Minister Nirmala Sitharaman in the Budget speech said, “In order to encourage unlisted Infrastructure Investment Trust or a Real Estate Investment Trust, it is proposed to extend the same taxation regime as available to listed InvITs and listed REIT to unlisted REIT and InvIT.”
Currently, only listed REITs and InvITs enjoy benefits of tax pass-through status.
Pass-through status means that income accruing from such funds is taxed at the investor level and not the fund level.
Institutional investors like mutual funds, insurance companies and individual investors like ultra HNIs and