REITs Will Get Investments, No Need for More Sops: Officials
New Delhi: Real Estate Investment Trusts will help attract more funds into the realty sector and there is no need to provide more tax concessions for it, a senior government official said today.
REITs and Infrastructure Investment Trusts (InvITs) are expected to bring in more global investment and bring transparency into the real estate and infrastructure sectors, respectively.
Capital market watchdog Sebi, whose board last month approved regulations for REITs, is expected to soon notify the new norms.
Additional Secretary, Department of Economic Affairs, Dinesh Sharma said that such trusts would help in attracting more funds.
"There is no need to provide any extra sweetness to it, no need to provide any extra tax concessions than what are already announced in the Budget," he said at a conference here.
While presenting the Union Budget 2014-15, Finance Minister Arun Jaitley had said that REITs have been successfully used as instruments for pooling of investment in several countries.
"I intend to provide necessary incentives for REITs which will have passed through for the purpose of taxation. As an innovation, a modified REIT-type structure for infrastructure projects is also being announced as Infrastructure Investment Trusts (InvITs), which would have a similar tax efficient pass through status, for PPP (public-private partnership)and other infrastructure projects," Mr Jaitley had said in July.
REITs and InvITs can be listed on stock exchanges like shares of any company and allow retail and institutional investors to buy or sell those securities.
These new products would allow investors to invest in specific products linked to real estate projects and infrastructure projects, while providing necessary safeguards.
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