RIETs Taxation
If at all you invested in RIETs, you know there will be occassional payouts like dividend payout for stocks. But there are multiple distributions in the payout done, some of them are
- Interest Income
- Income from renting or leasing
- Proceeds from amortisation of debt received from SPV (Loan repayment)
- Dividends
- Any other income etc.
There is different taxation for different distributions in the payouts and the summary of them is in the below table.
| Distribution type | Tax Treatment |
|---|---|
| Rental / Interest income | taxable as per slab rate |
| Dividends | Exempted if SPV has not opted for special tax regime (under 115BAA), Taxable if SPV has opted for special tax regime |
| Loan repayment | When total amount distributed as loan repayment from date of issue by trust exceeds issue price, this will become taxable as per slab rate |
| Any other income than above | Exempted |
Every unit holder will be sent Form no 64B, which is the annual statement of income distributed by RIETs to a unit holder which has the table showing how much was paid out under what distribution etc. A sample Form 64B is here