Budget proposes tax transparent treatment to Real estate investment trusts: Commercial real estate to get a push, by Nidhi Bothra,11th July,2014

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SEBI in super activity mode – Good news for the capital markets

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SEBI has asked the government to provide tax clarity on REITs. SEBI had issued a draft regulation[1] on REITs in October, 2013 and is intending to finalise it soon but is awaiting for clarity on taxation issue. SEBI expects REITs to receive pass-through status. Globally REITshave been used significant vehicle for exposure in real estates and taking advantage of the growth in the real estate market. India being an emerging market has been mulling over years for introducing REITs regime. The draft paper on the regulations was a welcomed move from the regulators and the market participants very keenly await the regulations and the tax regime to get finalised on the issue.

The figure below shows the global volumes of REITs over the last few years –

Source: Global perspectives 2013 REIT report, E&Y