In a move that is expected to ease the real estate sector’s financing woes and help Real Estate Investment Trusts (REITs) take-off, finance minister Arun Jaitley, in his latest Budget announced the exemption of dividend distribution tax (DDT) from the business trust.
Jaitley had, in his first Budget speech in July 2014, announced that the Centre would provide the necessary tax incentives to REITs. The Securities and Exchange Board of India (Sebi) had notified the regulatory framework for registration and regulation of REITs in India in September 2014. In December 2015, Sebi had also issued a consultation paper on the guidelines for the public issue of units of REITs. Despite these measures, the instrument had failed to kickstart.
