MUMBAI: The Securities and Exchange Board of India (SEBI) asked Indian government to soften tax laws to give relief to investors and business community.
The board has written to federal government asking easier tax rules for Real Estate Investment Trusts (REITs) to help the product category pick up. The capital markets regulator has recommended abolishing capital gains tax and minimum alternate tax (MAT) for sponsors of REITs and investors as several real estate players are holding back their plans to raise funds through this new investment route citing stiff taxes.
Last year, Sebi had put in place the regulations after the government, in the 2014-15 Budget, gave REITs the ‘pass through’ status for the purpose of taxation to attract long-term foreign and domestic investors, including nonresident Indians. But, industry trackers said taxation rules for REITs have been the biggest dampener, making the product appear less lucrative to both sponsors and investors.
“Many players are holding back their plans to raise funds through REITs due to the taxati.
