REIT, InvIT Dividend Tax Relief Set to Boost Investor Returns

Imagine a group of people buy big buildings like malls or offices.

A REIT is a company that does this, and an InvIT helps pay for big things like highways.

When these groups earn money, they share some of it with investors, and that share is called a dividend.

In India, lawmakers in the Lok Sabha made a new rule.

The rule says the government will stop taking tax on these dividends, no matter which tax system the building group chose.

Earlier, investors had to pay tax on dividends if the group picked the new tax way.

Lawmakers also added a small extra fee on some related companies.

Experts think more people will now want to invest because the tax rules are clearer.

But the rule only covers dividends — money from interest or selling units is still taxed.

So investors keep more of their dividend money, but must still check what their payout is made of.