Malkd’s Core Portfolio

I went through the embassy thread and not able to dissect the tax related info for the investor straight away. So did a Google search and found a live mint article. But it says interest, dividend ( SPVs have paid concessional rates of tax on their profits) and rental income are all taxed in the hands of the investor. But @Malkd , @naveen062000 and @KS16 said it is not. I’m a little confused.

1. If one examines the various streams of income, interest paid by the SPVs is an allowable tax deduction for the SPV, not taxable in the hands of the Reit/InvIT but taxable in the hands of the investor.
2. The dividend paid by the SPVs out of tax paid profits are not taxed in the hands of the Reit/InvIT, but are taxed in the hands of the investor only if the SPV has opted to pay the concessional rate of tax on its profits.
3. Rental income of the Reit is exempt in its hands, but taxable in the hands of the investors.
4. Effectively, there is only a single level of taxation for most streams of income, except cases where the SPVs have paid concessional rates of tax on their profits, in which case the dividend is taxed again in the hands of investors, though the SPV has paid tax on its profits.

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And with respect to capital gains, the articles are even more confusing.

1. LTCG if held for 1 year and LTCG tax is 20% (not 10%) according to an ET article.
2. But another mint article says 3 years for LTCG. But there too confusion saying a) 10% (no indexation) and b) 20% (with indexation).

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