 "REITs will get investments into realty sector, no need for more sops: Govt official")
New Delhi: Real Estate Investment Trusts will help attract more funds into the realty sector and thereis no need to provide more tax concessions for it, a seniorgovernment official said today.
REITs and Infrastructure Investment Trusts (InvITs) areexpected to bring in more global investment and bringtransparency into the real estate and infrastructure sectors,respectively.
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Capital market watchdog Sebi, whose board last monthapproved regulations for REITs, is expected to soon notify thenew norms.Additional Secretary, Department of Economic Affairs,Dinesh Sharma said that such trusts would help in attractingmore funds.
“There is no need to provide any extra sweetness to it,no need to provide any extra tax concessions than what arealready announced in the Budget,” he said at a conferencehere.
While presenting the Union Budget 2014-15, FinanceMinister Arun Jaitley had said that REITs have beensuccessfully used as instruments for pooling of investment inseveral countries.
“I intend to provide necessary incentives for REITs whichwill have pass through for the purpose of taxation. As aninnovation, a modified REIT-type structure for infrastructureprojects is also being announced as Infrastructure InvestmentTrusts (InvITs), which would have a similar tax efficient passthrough status, for PPP (public-private partnership)and otherinfrastructure projects,” Jaitley had said in July.
REITs and InvITs can be listed on stock exchanges likeshares of any company and allow retail and institutionalinvestors to buy or sell those securities.These new products would allow investors to invest inspecific products linked to real estate projects andinfrastructure projects, while providing necessary safeguards.
PTI