New Taxation Bill Impacts REIT and InvIT Tax Exemptions

The newly introduced Taxation Laws Amendment Bill clarifies that not all REIT and InvIT distributions will remain tax-free for investors.

Under the new regime, Special Purpose Vehicles (SPVs) are now required to pay a 25% surcharge, impacting the net yield for unit holders.

The Rajya Sabha is scheduled to debate the bill tomorrow, which also includes provisions for the Bankers' Books Evidence Act.