Naredco seeks withdrawal of DDT on REITs

Naredco seeks withdrawal of DDT on REITs
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Real estate developers' body Naredco on Tuesday said it has urged the government to withdraw tax on the dividend received by InvIT/REIT unitholders to keep the product attractive for investors.

Mumbai: Real estate developers' body Naredco on Tuesday said it has urged the government to withdraw tax on the dividend received by InvIT/REIT unitholders to keep the product attractive for investors.

As per the new proposed dividend distribution tax (DDT) rules, dividend income from shares and mutual funds to be taxed in the hands of the unitholder, instead of the company, at applicable income tax rates.

In a letter to Economic Affairs Secretary Atanu Chakraborty, Naredco said that continuation of dividend exemption in the hands of the unitholders will help in destressing the banking system as InvITs and REITs would be able to raise equity funds, which could replace the debt funds.

"Successful InvITs and REITs would make the infrastructure and commercial real estate sector more robust and attract larger employment, which will help in revival of the economy," it said.

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