How is income from Reits and InvIT taxed?
The hurdle for small investors is the higher min amount that a person has to invest
Recent weeks have seen a rights issue by an infrastructure investment trust (InvIT) as well as an IPO by another. As more and more real estate investment trusts (Reits) and InvITs are getting listed, and as understanding of these instruments grows, investment in such instruments is gaining popularity, mainly on account of the post-tax yields offered by them. The icing on the cake is that while such trusts are mandatorily required to pay out 90% of their distributable cash flows, and such distributions are mandatorily required to be made every half year, some of them make such payouts every quarter.