How are REITs and InvITs taxed?

Taxation
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How are REITs and InvITs taxed?

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You mean the dividend or cap gains?

Gains from sale is taxed as usual STCG/LTCG on equity.

Dividend is taxed as usual too.

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Dividend income from these trusts is tax-free if the underlying SPV has not opted for concessional tax rates. This introduces slight variation in taxability of dividend for each REIT/INVIT.

Of the listed REITs, most big ones have dividend completely tax free. For PGINVIT and Indigrid, generally their dividend is combination of taxable and tax free. Haven’t studies other invits.

Also remember this is for dividend only, quarterly distribution coming from REIT/INVIT have various components apart from dividend, like interest (taxable), Capital repayment (tax free) and other income.

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