ARTICLE · 17 JULY 2014

Budget 2014: A Game Changer For REITs?

Nishith Desai Associates

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Budget 2014-15 has introduced tax incentives for the real estate investment trusts regime, and also provided for relaxations in foreign direct investment regime.

IndiaFinance and Banking

Prasad Subramanyan

Deepak Jodhani

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Budget 2014-15 ("Budget") has introduced tax incentives for the real estate investment trusts ("REITs") regime, and also provided for relaxations in foreign direct investment ("FDI") regime. With the tax incentives in place, the Securities and Exchange Board of India ("SEBI") is likely to formally announce the REIT regulations that are currently in draft form. In this hotline, we discuss some of the key changes and its Budget 2014 impact on the real estate sector. For a detailed analysis of the impact of Budget 2014-15 on other aspects as well, please refer to our hotline "India Budget 2014: New Beginnings and New Direction".

CHANGES IN RELATION TO REITs

1. Background

As a background, the Securities and Exchange Board of India ("SEBI") had released the draft regulations on REITs ("Draft Regulations") for comments on October 10, 2013. The Draft Regulations as released are available here. Though the Draft Regulations were received positively, it was imperative

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