Global funds seek review of India’s dividend tax on REITs, InvITs (The Economic Times)
February 7, 2020 — Global institutional funds and industry associations are seeking an urgent review of the recent Union budget proposal to tax dividends in the hands of unit holders or investors of infrastructure and real estate investment trusts (InvITs and REITs) which were otherwise not taxable.
The move is likely to hit both global investment inflow into these assets and local retail investors’ participation, they said.
“This seems to be an inadvertent error, which needs reconsideration,” said top executive of a global fund operating in India. “InvITs and REITs should have been carved out separately. If it has been left out on purpose, it is a complete U-turn by the government.”
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