Union Budget 2014-15 Reactions: Bijal Ajinkya, Partner, Khaitan & Co.
Infrastructure investment trusts and REIT
The Government has very clearly shown its focus on the infrastructure and real estate sector by making a proposal to provide a tax pass through to Infrastructure investment trusts and REITS. This was one of the biggest uncertainties and bottlenecks which prospective real estate and infrastructure trusts were facing for the set up and the tax clarity will see the creation of many such REITS. The REITS platform provides an attractive option to exit some investments and will give developers a new avenue to raise funds and conduct development activities in the country.