How InvITs can turn asset-heavy businesses into golden goose

The Union Budget for FY22 has continued the focus on InvITs/REITs. The government has been perfecting these instruments overtime. This instrument has already caught the fancy of corporate India, while investors are still warming up to it. We had seen several issuances of these instruments over the past few years.

New rule changes, where no TDS would be levied on the interest and dividends from such instruments, does simplify the structure further and makes it more attractive for foreign participants. Also, there is a clarification that lower treaty rates would apply.