@Sudhakar_Subramanian
In short:
There is a new reduced tax regime(under section 115BAA) and if SPVs opt for it the dividend income would infact be taxed. But embassy office(and mindspace) have not opted for it and stayed under the old regime. So basically, The Dividend income where the SPV has not opted for the lower tax regime [under section 115BAA of the Act] is Exempt in the hands of the Unitholders.
Also no tax on amortization. So only interest portion is taxed. Regards rental income, embassy gets charged tax on it and it then goes through an spv and comes to us as dividend(under the old scheme… hence not taxed).
Last year embassy simplified their structure further too to increase this non taxed dividend income. Youll find this in the q3 concall from last year. Attaching a pic from it which is already present in the embassy thread:
There’s a faq released by embassy which i think youve found that explains the way tax is handled that should clear your doubts. The non taxed amount being almost 85 percent was a huge surprise since post simplification 70 to 75 is what was expected. Regards ltcg… yes… its a 3 year hold. But ive found selling a few units near nav/above nav to be worthwhile
Note that my wifes CA himself doesnt understand reits and he just has to trust me when he saw my wifes dividends coming in and i told him it only some part of it is taxable. He too found some links and told me its taxable and i ignored them and referred the faq and concall and have not ended up in trouble yet 
. So it is rather confusing
| Subscribe To Our Free Newsletter |
