Expect clarity on REIT taxation, sops for SEZ: Bhairav Dalal

Bhairav Dalal, Associate Director, PwC India, replies to questions on what to expect in the real estate sector from the Budget

What are the expectations for the real estate sector?
- Krishnakanth Madamshetti

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While there are a lot of expectations on direct tax sops for the real estate sector, at the very least, we expect certain clarification on taxation regime of REIT (real estate investment trust) to eliminate impediments to implement the structure and provide parity of taxation regime between various investments in Indian listed platforms. As expressed during the last Budget, the government in order to revive interest in Special Economic Zones (SEZ) could reinstate the Minimum Alternate Tax (MAT) exemption provided to SEZ developers and SEZ units. Further, exemption from levy of Dividend Distribution Tax (DDT) could also be reinstated for SEZ developers. Further, certain other measures are expected to be taken to make liquidity available to the sector.