NEW DELHI, May 2: Indiaâ’s largest property developer DLF Ltd today said it plans to set up trusts in infrastructure and real estate (REITs) within this year , encouraged by clarity given by the Finance Minister Arun Jaitley with regard to tax treatments of such funds. ”DLF has already announced its intent to pursue REITs and reiterated DLF’s commitment to set up its first REIT within this year itself consequent to receipt of all necessary approvals,” the company said in a statement.
Group CFO Ashok Tyagi said the Finance Minister has clarified that Minimum Alternate Tax (MAT) will not be applicable on notional book gains, arising from exchange of shares in SPV (special purpose vehicle) with unit of trusts in Infrastructure and Real Estate (REITs/InvITs). ”This decision removes the major policy hurdle and will give a significant boost to the establishment of these trusts. This coupled with the recently announced capital gains tax exemption at the hands of the sponsor and other fiscal incentives to the investors will make Infrastructure and Real Estate trusts far more viable and attractive,” Mr Tyagi said. He said the Infrastructure and Real Estate trusts provide a huge opportunity for unlocking capital and bank credit in these sectors and shall accelerate infrastructural development in the country. (UNI)
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