Stamp duty may be removed on property transfers to Reits

Q: The Union government may consider removing stamp duty on transfer of properties by private individuals and firms to real estate investment trusts that are expected to get listed on stock market beginning April next year.

Bikram, Mumbai

28th September 2015

Real estate News in Mumbai

stamp duty

finance minister arun jaitley

reits

minimum alternate tax

dividend distribution tax

ddt

property transfer to reits

transfer of properties

transfer of properties to reits

infrastructure investment trusts

invits

Follow Discussion

Also see discussions for

Mumbai Real estate News Real estate News in Mumbai

Replies (3)

DLF has also announced plans to start 2 Reits, with one exclusively for commercial office space by end of this financial year. The company has made public plans to monetise about 30 million sq-ft office and retail space.

Mahendra, Mumbai

29th September 2015

Comment

Yes, the demand for released from payment of stamp duty and DDT came after the government recently removed long-term capital gains tax on transfer of Reits units by their sponsors or investors. The government has also released payment of minimum alternate tax (MAT) when investors transfer shares to the Reit or on sale of Reits units.

khushisha, Mumbai

28th September 2015

Comment

@Khusisha,
Even many analysts' reports have suggested that the possibilities for Reits listing in India was about $ 20 billion given that 3 months ago, foreign investors were also allowed by government to park their funds in these trusts. In May, the Union cabinet allowed foreign investors to take exposure in Reits to bring in capital and reduce the debt liability of domestic real estate firms.

Ravi Waghmare, Mumbai

28th September 2015

As per report by Raheja group, the country's top 7 cities have more than 400 million sq-ft of operational office space, which expects the sector to grow by about 25-30 million sq-ft, annually. Of this, over 150 million sq-ft would be ready for Reits listing.

Govinda,

28th September 2015

But rating agency CARE said in a note that tax levies, including DDT and stamp duty issues, were flagged by top investment bankers and chief executives of companies, including JP Morgan & Blackstone, 2 days ago at meetings with prime minister Narendra Modi in New York. Pending tax issues have been holding back equity investors and real estate companies from making it big in real estate investment trusts and infrastructure investment trusts.

Ravi Waghmare, Mumbai

28th September 2015

It is also come to hear that the center will also consider making dividend distribution tax (DDT) transit for Reits and investors in the trusts.

khushisha, Mumbai

28th September 2015

Comment

It is said that Finance minister Arun Jaitley is expected to consider these 2 issues shortly, following representations received by the prime ministers office from both domestic and foreign private equity players in the past 2 months.

Shantanu Kumar, Mumbai

28th September 2015