Friday, November 1, 2013
The Securities and Exchange Board of India (SEBI) is calling on the Government to consider tax incentives for real estate investment trusts (REITs).
Speaking to reporters, SEBI Chairman U.K. Sinha said that "for REITs to be successful, they have to be tax efficient." He added that SEBI will be talking to the Income Tax Department "to make it happen," but did not offer any more details.
Earlier this month, SEBI released a consultation paper on proposed draft REIT regulations. It contained few hints as to what the desired tax incentives would be. Its only real tax-related recommendation was that not less than 90 percent of the net distributable income after tax of a REIT must be distributed as a dividend to unit holders.