New tax on distribution income, a budget damper for Reits, InvITs
Budget proposal makes amortization of debt taxable in hands of unitholders under ‘income from other sources’
They were considered a good investment avenue till now—one that made sense to be in your portfolio. But that was before the finance minister presented the budget on 1 February. Post-budget, investors seem to be shunning publicly listed real estate investment trusts (Reits) and infrastructure investment trusts (InvITs). Their stock prices have fallen 1-8% against the broader market index’s (Nifty 50) gain of 1% till date.